Crude oil is trading above the 50 and 100 – day moving averages but it is below the 20 – day moving average. A close below it would confirm that a short-term top is in place at 63.59, the May 6 high.
Prices are expected to find support at 57.77, which is the 23.6% Fibonacci retracement of the downleg from 107.45 to 42.84. A fall through this support would take prices to the next support level of 55.70.
To the upside, prices are expected to find resistance at 63.59, and a rise through could take it to the next resistance level of 67.09, which is the 38.2% Fibonacci level.
RSI is falling, which signals that further downside is possible but it is still above 50, in bullish territory. The near-term bias is likely to be neutral and more sideways action is expected after the pause in the rally from 42.84 to 63.59.