USOIL: Bearish Engulfing with Bearish Divergence Targeting $66

As stated in the descriptions previous ideas I have included in the related publications oil was likely to significantly spike up but then pull back significantly below $100 for at least a week or so as the indexes staged a recovery. So far we have seen a spike up reaching as high as $119 per barrel or $2.84 per gallon and we have seen a decline and stagnation around the $100 per barrel or $2.40 per gallon mark all the way down to as low as $77BLL or $1.84GLL, but we have since rallied back to the $100 zone. However, at this level we have seen Oil Bearishly Engulf on the Daily Timeframe and have seen Bearish Divergence in the RSI. I think it is likely that oil will have to see an even greater pullback towards the 200-day EMA in white currently at around $66 per barrel and $1.56 per gallon and fill the unfilled gap. After coming down to test the 200 EMA and filling the gap at $66 I think oil could very well continue higher reaching as high as $178 per barrel but that's a long time from now.

Previous Bullish Oil trade listed in the description of this idea.

Most recent call for Index recovery and for Oil to come back down well below $100 listed here.