Consolidation in the crude oil markets continues to stretch into the third week. Price action continues to trade nearly flat for three weekly sessions so far.
As a result, price action is firmly entrenched within the sideways range between 53.77 and 51.87.
The flat trading comes amid concerns of the vaccine rollout which could potentially delay the global economic recovery. Price action has been repeatedly testing the 51.87 level of support which has held up so far.
However, a breakdown below this level could potentially see a short-term correction on the horizon.
We continue to maintain that the downside target remains near the 49.00 handle for the moment.
