Oil Witnessing an Intraday Gain

US crude oil futures witnessed positive trading within the expected bullish path in short intervals, with touching the target of 38.70 to continue posting gains to 39.60.

Technically, the stochastic is still providing negative signals, in addition to the movement within the descending price channel shown on the chart.

There is a possibility that we will witness a bearish bias during the coming hours, noting that trading below the previously broken resistance, which became technical support at 38.60, facilitates the mission required to retest 37.50, followed by 36.50.

To activate the above scenario requires daily stability below 40.10 / 40.00 and the breach of 40.25 will push oil prices towards strong gains, targeting 41.30

S1: 37.50	R1: 40.25
S2: 35.80	R2: 41.30
S3: 34.70	R3: 43.00