The recent bull run in the oil markets is slowing down with the commodity posting a flat close for two consecutive weeks now.
On Friday, oil prices were testing the lower end of the sideways range between 53.77 and 51.87. This comes after the second minor rising trendline was breached.
While there was a small pullback into the weekly close, the overall bias remains mixed. This sideways range could continue especially if the current rebound off the floor could see prices attempting to rise back.
But in the event that oil prices break down below the 51.87 level, then we expect a correction toward the 49 – 50 region in the short term.
The confluence of the major rising trendline alongside the horizontal support could put a lid on the declines.
