/CL (light sweet crude oil futures) is approaching the 66.80ish support level with positive (bullish) divergences forming on the RSI & PPO, thereby increasing the odds of a counter-trend rally anywhere from current levels down to the 66.80ish area. 60-minute chart:
CL 60-min July 16th
Likewise, USO has fallen to the 13.95 support level with potential bullish divergence forming on the 60-min time frame. As such a minor counter-trend rally is likely followed by another thrust down to the 13.60ish support level over the next week or so.
USO 60-min July 16th
I remain intermediate-term bearish on crude but I’m leaning towards a near-term bounce that could run as high as 3-5% above current levels with a target range of 14.30 – 14.67 on USO.