WTI crude oil managed to break out of the 42.00 ceiling on late Monday. However, following a brief rally above the 42.00 level, the commodity is seen pulling back.
We expect the 42.00 price level to be tested once again. There is also a possibility for WTI crude oil prices to consolidate back inside the range.
However, the upside breakout above 42.00 could suggest further gains. But a lot will depend on the fundamentals which need to be supportive of oil prices.
Following the recent high above 43.00, we expect this level to be tested in the short term.
The main target remains the 50.00 price level next.