US oil futures opened lower on Monday to extend their losses to a ninth straight day. Oil has been heading lower since peaking at 42.47 on March 18, which was a 54% rally from the January low of 27.54.
Prices have fallen below the 38.2% Fibonacci retracement level of the January-March upleg and the next support level is likely to come at the 50% Fibonacci level at 35.0. This is also where the 50-day moving average is converging. A break below this level would strengthen the downside pressure and shift the bias from positive to neutral.
RSI has already turned negative below 50 but the MACD is still in positive territory, suggesting there is still some momentum for an upward push. Should prices reverse, resistance could be met around the 38.2% and 23.6% Fibonacci levels at 36.75 and 39.0 respectively.
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