Crude light paused at our .618 target of 62.65, but has since continued sliding. Recall that this was supposed to be major support as the chart from a few days ago shows.
The fact that neither the channel nor the .618 Fib held is quite bearish. The next Fib support isn’t until the .786 at 49.17, followed by the .886 at 41.14.
If we don’t adjust prices to reflect contract changes, the levels are 50.67 and 42.41 respectively. Either way, we’d want to continue to be short.
I see no other channel, moving average or chart pattern support In fact, the daily RSI just fell through its support.
We can argue that CL is oversold, but I see very little to prevent it from becoming more so anytime soon.