For a couple of months NYMEX crude oil was consolidating in between the key weekly moving averages. In the first week of July the oil has broken out from the consolidation on the downside. The daily Bollinger bands, which had become fl at, are expanding; suggesting that the move can continue on the downside. The short-term as well as medium-term momentum indicators are in a bearish mode. In terms of wave structure the oil is forming an impulse on the downside and the fifth leg is forming an extension on the downside. In the last session the oil broke 61.8% retracement mark. The subsequent level on the downside will be $47.17 and $46.50. On the other hand, the swing high of $51.41 will act as a key resistance.