Oil Pulls Back Towards The $52 Level

Oil faced strong resistance near $52.70 and pulled back closer to the $52 level. RSI is still in the overbought territory so the pullback has decent chances to continue. If oil manages to settle below the $52 level, it will be able to get to another test of the support at $51.50. A move below the support level at $51.50 will push oil towards the support at $50.90.

On the upside, oil needs to stay above the $52 level to continue its upside move in the near term. The nearest resistance level is located at the recent highs at $52.70. If oil settles above this level, it will head towards the next resistance at $53.30.