- Oil’s failure to take out $41.86 (38.2% of Feb low-June high) and a slide to $40.80 despite having bounced off from 200-DMA on Friday suggests the bearish force remains strong and prices could test and actually break below 200-DMA level of $40.47.
- Such a move would expose $40.00 handle.
- On the higher side, only a day end closing above $41.86 would signal short-term bearish invalidation.
