The trend is bearish and at technical resistance on overbought momentum, bearish rejection candles here would suggest another downward wave, fresh market longs should be cautious at these levels. Any failure to make fresh lows (as in bullish reversal candles creating a pivot low) as this would suggest the trend could be entering into consolidation or reversing.

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Last week’s drop into the US$ 46.00 zone was met with a bullish rejection candle that has resulted in a reversion back to the 20 period EMA.
The stochastic is now overbought as we approach technical resistance levels around the US$ 51.44 – US$ 52.46 zone, this is also supported by the 20 period EMA. Market longs need to be cautious at these levels and look to tighten risk as any bearish rejection candles, will attract technical sellers to the market targeting the US$ 46.64 support or lower.
Any pullback in price from these levels that result in further bullish rejection candles above the US$ 46.64 level should have market shorts looking to tighten risk. A higher low would suggest the July contract is basing and could potentially reverse.

The trend is bearish and at technical resistance on overbought momentum, bearish rejection candles here would suggest another downward wave, fresh market longs should be cautious at these levels. Any failure to make fresh lows (as in bullish reversal candles creating a pivot low) and this would suggest the trend could be entering into consolidation or reversing.

Source: FIS