Blue rectangles- lower highs
Red lines- Fibonacci extension targets
Oil price bounced recently towards $105-$106 but another lower high has been formed. Oil price is again below $100 and remains vulnerable to more downside as we mentioned in our last analysis. In our previous Oil analysis we noted that as long as Oil price is below $111, we remain pessimistic waiting for more downside. Oil is now trading below $98. Price is preparing to make new lower lows and our target is now at $93.50 and next at $87-$86. Trend remains bearish. The RSI is not in oversold levels and as long as price remains below recent high, we continue to be bearish Oil.