Yesterday’s close in red signaled that recovery from $47.08 low might be running out of steam ahead of psychological / daily cloud base barrier at $50.00.
However, oil managed to close above 200SMA that marks solid support ($48.70) for the second day keeping in play hopes of fresh attempts higher.
Stronger direction signals could be expected on break of either pivot (48/70 or 50.00), while the price may spent some time in extended consolidation within this range.
Near-term studies are neutral, while bearish tone prevails on dailies and keep risk shifted lower.
Firm break below 200SMA would signal upside rejection and fresh weakness that may return to $47.08 low.
Conversely, violation of base of thick daily cloud ($50.00) would trigger stronger correction of $53.78/$47.08 fall.
Res: 49.10; 49.61; 50.00; 50.43
Sup: 48.70; 48.44; 47.90; 47.08
