Oil prices pared losses to close on a bullish note on Friday. This put price action back near Wednesday’s highs close to the $45.50 levels.
The overall short term momentum is to the upside in the oil markets. However, watch how prices react near the rising trend line and the horizontal price level of 45.50.
A close below this level could signal a correction that could push oil prices back to the 43.50 level.
To the upside, if the markets remain bullish, we expect prices to continue higher.
The next key area will be the psychological round number of $50.00.
