Oil Declines Below the $47 Level

Oil pulls back a bit after yesterday’s upside move but remains in the upside channel. It has recently made an attempt to get to the test of the support at $46.25 but failed to develop sufficient downside momentum. If oil declines below this level, it will head towards the next support at $45.80.

On the upside, oil needs to stay above $46.65 to continue its upside move in the near term. The next resistance level for oil has emerged at $47.30. A move above this level will push oil towards the recent highs at $47.70.