CL: Crude Oil Forming a Reversal Top?

Crude Oil reversed from its highs of last week near $40.7, almost closing the gap. The chart rallied up to its 50% retracement level ($40.7) of the recent major decline and is now pointing downward. Possible next retracement levels are: 78.6% ($35.39), 61.8% ($31.14), and 50% level at $28.7. MACD is forming a top; RSI is pointing downward.

Fundamentals are bearish: Supply cuts have been confirmed by OPEC+ last week, but only through July, which is a short-term measure. Inventories showed a build of 5.7 Mb for the week of June 5 (EIA report). Lack of demand is a major concern to investors, although production is slowing down. Supply is still ahead of demand.