The technical picture looks a bit iffy for oil as the latest break lower starts to take out some key support levels.

The recent trendline support (white line), 100-day moving average (red line) and 61.8 Fib retracement level in the region of $104.69 to $106.44 made for a decent spot for buyers to stand their ground but even that wasn't enough. After so much resilience over the past two months, we're starting to see a crack in the armor perhaps. As mentioned yesterday:

"The 100-day moving average in particular is a key technical level to be mindful of, as oil hasn't traded below that since December last year. I'd be inclined to go in search of dip buying opportunities and this is a pretty decent spot.

"However, I wouldn't throw everything in at one go as a drop from here will quickly draw into focus the $100 mark and then potentially the swing lows since March around $95 next. A push towards the latter might offer more value in terms of a structural trade, even more so if price does swing towards the 200-day moving average (blue line)."

With the break yesterday, it is starting to invite a push towards $100 next.