A drop like this tests the real areas of support. I feel there are two ways it can go from here. This will create a spectacular V-Bottom on the chart where everyone is feeling gloom and doom. Then there will be some bullish news that sends oil much much higher off of the v-bottom like an emergency OPEC meeting or it could fail support and go to 33. This will no longer trade in a channel which is my opinion and not a fact. There is one very bullish event that might happen soon which is North Korea testing a nuclear device with Iranian officials present at the blast site.