WTI crude oil prices continue to hold a bullish front with price once again testing the 13th January and 15th January highs near 53.77.
However, the strong pace of gains is showing signs of weakening. Price action has failed to make any significant highs beyond this level.
The failure to close above 53.77 could potentially open the way for a move back lower. This would mean that the previous swing low formed near 51.85 is likely to be the short term support for the moment.
If price action breaks down below this level of support, then we could expect to see further continuation lower.
For the moment, given the bullish momentum in oil markets, we might see another attempt being made to the upside.
In the event that crude oil prices close above 53.77, then it would open the way to further gains.
