Oil CL correcting lower, but downside to remain limited

Crude Oil prices have begun their anticipated corrective pullback.

Prices have broken below the USD50.71 congestion base and reached the USD48.35, (23.6%) Fibonacci retracement of the 2016-2017 rally. Falling momentum studies and the bearish Tension Indicator (not shown) anticipate still deeper reactions towards the USD47.18, (61.8%) Fibonacci retracement of the November-January rally.

Further slippage will open up the USD44.82 low of 29 November.

Resistance is lowered to USD50.71, and should cap any immediate bounce. If broken, not seen, prices will trade back into previous congestion, with USD53.00 to then attract