Oil – Brent above $50, WTI shows head and shoulder

Oil prices at both the sides of the Atlantic appear on track to extend gains, however, prices need to see a break above recent cyclical high in order to bring in fresh bids.

Brent technical levels

Resistance - $50.89, $51.50, $52.00

Support - $49.81, $48.78, $48.34

• Brent made an attempt to take out latest cyclical high of $50.89 yesterday but failed, although subsequent activity has been anything but encouraging for the bulls.
  

• Prices remain around $50.40 levels in early Europe today.
  

• Selling interest could strengthen if prices break below yesterday’s low of $49.73, in which case strong support at $48.34 stands exposed.
  

• On the higher side, a day end closing above $50.89 is required to signal continuation of the rally towards $52-54 levels.
  

WTI oil – hourly chart shows a possible head and shoulder formation with neckline support around $48.20 levels.