London Gas oil futures have been underperforming in the past six days, breaking below the 38.2% Fibonacci retracement level of the upleg from 352.63 to 751.00, around the 600.00 handle, recording a fresh eight-month low of 584.50.
Momentum indicators are endorsing the sharp bearish movement as the MACD is strengthening its negative momentum in the negative area and the RSI holds below the oversold zone.
The next target to the downside is the 555.60 support, which stands near the 50.0% Fibonacci mark. Falling below this area would help traders to move towards the 540.00 hurdle.
Upside moves are likely to find resistance at 600.00 before climbing until the 623.80 barrier. Clearing this key level would see additional gains towards the 23.6% Fibonacci mark of 657.30, standing slightly above 20-day simple moving average (SMA).
Concluding, the price seems to be strongly negative in the short-term, however, looking at the long-term view, it has been facing a bullish structure since July 2016.
