OIl's sharp decline in the last few trading sessions and a break below $41.86 (38.2% Fibo of Feb low-June high) has left prices oversold as per the hourly RSI
. The hourly MACD
is seen turning the corner as well.
Consequently, we may see a minor corrective rally to $42.60-42.70 ( falling wedge
resistance), where a failure could provide fatal and open doors for a fresh sell-off.
On the downside, the major support is seen at $40.58 (200-DMA).