Oil May Slump Below ‘Consolidation’ Range: Technical Analysis

Oil may extend its decline below $80 a barrel after prices dropped out of a “consolidation range” on technical charts, according to Cameron Hanover Inc.

Crude, which tumbled the most in eight months yesterday after China unexpectedly raised interest rates, is trading below a sideways band in place since the start of this month, said Peter Beutel, president of the New Canaan, Connecticut-based energy adviser. Prices have also slipped further from the higher of two Bollinger Bands and could approach the lower marker near $72 a barrel before a sustained rebound, he said.