Oil gained strong momentum and continues its attempts to settle above the $50 level. RSI remains in the moderate territory so there is plenty of room to gain momentum. The next resistance level for oil, which is located at $50.50, has already been tested during the current trading session and proved its strength. In case oil manages to settle above this level, it will move towards the next resistance at $50.90.
On the support side, a move below the $50 level will be disappointing for the bulls as the risks of a fake breakout will increase. The next support level is located at $49.40. If oil declines below this support level, it will gain downside momentum and head towards the next support at $48.65.
On the support side, a move below the $50 level will be disappointing for the bulls as the risks of a fake breakout will increase. The next support level is located at $49.40. If oil declines below this support level, it will gain downside momentum and head towards the next support at $48.65.
