Oil Needs Careful Consideration

US crude oil futures are still witnessing mixed trades, recording a low of 46.35 in the previous session, after having managed to reach a high of 47.22.

Technically, with a closer look at the chart, we find a contradiction between the negative signals coming from the RSI over the short term, which contradict the clear positive crossover signals on the stochastic indicator.

Therefore, we will stand on the fence, momentarily, Awaiting one of the following scenarios:

To get a bullish trend, we need to witness a breach of 47.20 to enhance chances of a bullish move towards 47.60 / 47.65 and gains may extend towards 48.10. Activating short positions requires breaking 46.30 to target 45.90 and 45.50, respectively.

S1: 46.35	R1: 47.20
S2: 45.90	R2: 47.65
S3: 45.50	R3: 48.10