Oil Moves Towards The $52 Level

Oil managed to get above the $51 level and gained additional upside momentum. Currently, oil is trying to settle above $51.50 which will provide it with an opportunity to get to the test of the $52 level. RSI has entered into the overbought territory and the risks of a pullback are increasing but there is still some room to develop momentum. If oil gets above the $52 level, it will head towards the next resistance at $52.60.

On the support side, a move below the $51 level will push oil towards the support at $50.50. In case oil declines below $50.50, it will head towards the next support at the psychologically important $50 level.