Blue lines- Fibonacci retracement levels
Oil price is trading around $79 having lost nearly $2 in less than 24h hours. Recently we provided a warning to bulls that a pull back was imminent. In our previous analysis we confirmed the start of a reversal and a pull back. Oil is making new daily lows as price is approaching our first pull back target around $78.20 and the 38% Fibonacci retracement level. Short-term trend is bearish. The RSI has turned lower from overbought levels. The RSI is negative sloped implied that we should expect more downside in Oil.