Oil prices continued to retreat right after rising to highs above the 65.00 handle. The reversal in prices came as investors saw a lower threat of tensions between Washington and Tehran. Crude oil prices ended up closing the week on a strongly bearish note as a result.
Can Crude Oil Hold on to Support?
Price action is approaching the support area of the 58.70 – 58.40 region. This remains a crucial test for the commodity. If price action is able to rebound off this level we could expect some upside movement. However, oil prices will remain range-bound with the upper resistance level of 61.00 coming into play. To the downside, a breakdown below the support could extend declines to the 55.00 support.
