Oil has returned to its bearish trend

Oil started the week with optimism, driven by relief in the banking sector and a general risk-on mode in the market. Crude was also benefiting from weakness in the US dollar, which is generally a bullish factor for commodities. While there was a rise, it was far from the one seen in gold - oil doesn't have safe-haven status, after all.

Yesterday, the price created a shooting star candle on the daily chart, which could mark the end of the bullish correction in the market. A shooting star is usually a bad sign for buyers, especially when it's present on a key resistance level like this one. The yellow resistance area at around $72 per barrel was a key support level in February, January, and December. As long as we stay below this level, the sentiment is negative, and the chances of seeing new long-term lows are much greater than the positive scenario.