Oil is Looking For a Clearer Direction

US crude oil futures prices retreated to nullify the positive outlook as we expected, we indicated in the previous analysis that the return of the price consolidation below 40.75 and the most important 40.20 is able to stop the attempts to rise, and we are witnessing a bearish tendency targeting 39.20 to hit a low of 39.18, offsetting the long position losses.

Technically, with the price stabilizing below the previously broken support level 40.80 / 70.75 supports the negativity, on the other hand, the SMA 50 is trying to push the price to the upside. With technical signals conflicting, we prefer to remain neutral, so that we face one of the following scenarios:

The bullish trend needs a clear and strong break of the 4.80 resistance level, which opens the doors to 41.50 as a first target, and the gains may extend later towards 42.40. Activating long positions needs to see a break of 39.40, which extends losses of oil and puts the price under negative pressure with targets lie around 38.25.

S1: 39.40	R1: 41.50
S2: 38.25	R2: 42.40
S3: 37.40	R3: 43.50