Crude oil prices continue to trade softly with prices holding on above the 40.00 handle. But price action is now challenging the rising trend line from below.
A breakout above this trend line will confirm a further upside in oil prices.
The next main target is seen at the 42.00 handle. To the downside, failure to breakout might keep price action subdued.
We could see some consolidation taking place near the 40.00 handle.
But a close below this level could open the oil markets towards a stronger correction lower.