Oil: Price action suggests start of a corrective or consolidative phase - BBH

Research Team at BBH, suggests that the July crude oil contract did not have a textbook reversal pattern on June 9.  

Key Quotes 

“Though it traded on both sides of the previous days range, it did not close below the previous day's low.  However, there was follow through selling on June 10 before the weekend.  The price action appears to be signalling the start of a corrective or consolidative phase.  The RSI has turned down.  There is a bearish divergence in the MACDs.  The July contract closed below its 20-day moving average (~$49.10) for the only the second time since early-April.   Support is seen near $47.25-$47.50.  A break of that band would signal a downside correction rather than consolidation.  Initially, there would be scope for a move back into the $44-$45 area.”