WTI Crude Oil was stuck around 50 ahead of Brexit. It was stalling there as the market was tentatively awaiting the Brexit vote results. With votes favoring a Brexit, the market because risk averse. In this environment, oil is usually bearish as we can see from the daily chart.USDWTI Daily Chart 6/27(click to enlarge)ABC Correction Scenario and Downside Risk: I think oil will have a period of further pressure. One possible scenario is an ABC correction, where we are in the C-wave. This wave can be projected towards the 42-43.50 area, which is a support/resistance pivot area. We should see some support here. Look for the RSI is dip below 30 and turn up as well to time a possible bullish reversal from the 42-43.50 area. With a bit of momentum, the downside risk could be lower than 42, and be around the 38-40 area, another support/resistance pivot zone, with a psychological level.Limited Upside: However, the upside will likely be limited. 50 could be considered aggressive post-Brexit in 2016. Levels closer to 49 should probably be considered a lid to any subsequent bullish correction during the summer. " The outlook for oil versus for U.S. stocks relative to Brexit is different. U.S. equities in aggregate have some risk to the global environment, but because of its global nature, oil has far more. Thus, it will take oil more time to find confident bidders, and it is likely to trade in a range that marks a shift lower as a result of Brexit." (SeekingAlpha)