WTI oil futures continue to face downwards pressure today despite some upside moves during the day. RSI is flat below 50, while the MACD is trending down in negative territory.  The near-term bias therefore is bearish as the index goes into a corrective phase following a strong rally in the first half of the year.

Prices found support at 44.50 yesterday and this remains the immediate support level. A drop below this level would take prices towards the 38.2% Fibonacci level of the January – June upleg from 27.54 to 51.65. Failure to hold above the 38.2% Fibonacci level at 42.40 would take prices dangerously close to the 200-day moving average and would risk shifting the medium-term outlook to a neutral one.

A fresh upside momentum could see prices meeting resistance at the 23.6% Fibonacci level at 46, followed by the 50-day moving average at 48. However, without a break above the June 9 high of 51.65, prices will be stuck in consolidation mode.