Oil Continues to Gain

US crude oil futures prices jumped to achieve strong gains during the previous trading session, touching the target mentioned in the previous analysis at 41.10, posting a high of 41.2.

Technically speaking, the clear positive signs on the RSI, stability above the 50 midline, as well as the positive motive from the 50 SMA, are all technical factors that favor the continuation of the rally. Consequently, we will maintain the positive expectations targeting 41.75 / 41.65 as a first target, bearing in mind that confirming the recent breakout extends oil’s gains, and we will be waiting for 42.20.

From the downside, the return of stability below the previously breached resistance 40.75 and the most important 40.20 is able to negate the bullish attempts, and may witness a bearish slope targeting 39.20.

Warning: We are awaiting inventory data released by the International Energy Agency (IEA) that will have an impact on oil.

S1: 40.15	R1: 41.65
S2: 39.20	R2: 42.20
S3: 38.65	R3: 43.10