Crude continues to lack support through $39

With no real support until the 50% fib retracement at 38.76 and consolidation zone support at 37.55, crude looks destined to continue lower. Options markets are pricing August expiry at 36.69 on the downside and crude volatility is breaking out of a quarterly downtrend. Watch price action around psychological support at 40.00 for guidance.

I opened AUG 38 PUTS this morning looking for another leg lower in price and some vol carry. I'm targeting the floor of consolidation support at 37.55 and will get stopped out above 42.00