US oil futures have been consolidating since the late August rally that saw prices peaking at 49.29 came to a halt. Prices have been moving in a range of between 49.29 and 43.20 for much of the past month and subsequently moving into the downward sloping Ichimoku cloud. The current neutral bias is likely to continue in the near and medium term as RSI fluctuates around 50 and the cloud begins to move sideways.
Immediate resistance is provided by the 38.2% of the Fibonacci retracement level of the downleg of the June 24 high to the August 24 low at around 46.80. At the moment there is little momentum to take prices higher beyond the August 31 high of 49.29, just below the 50% Fibonacci retracement level, which is needed to shift the outlook to a bullish one.
Support comes at 23.6% of the Fibonacci retracement level at around 43.34. A break below this level could pull prices back towards the June-August downtrend.