Oil’s rebound from the low of $39.24 following a bullish price RSI divergence on 4-hr chart and a move above $40.85 (23.6% of 46.06-39.24) suggests a temporary loss of bearish momentum, nevertheless, the fresh bear turn in the hourly MACD and RSI’s retreat from overbought territory indicates prices could take out $39.24 and test hourly 50-MA support seen at $40.23.
Only a day end closing below $39.24 would indicate fresh sell-off towards mid-35 levels.
On the higher side, only a day end closing above $41.85 would indicate short-term bearish invalidation.