Crude oil prices tested the technical support area of 38.83 on Tuesday.
Price action was promptly rejected at this level, leading to a modest bounce to the upside.
But questions remain as to whether oil prices can hold the upside.
The 41.00 level will likely offer the main resistance to any short-term gains in prices.
The Stochastics oscillator is also a bit bearish, suggesting that prices could head lower.
In the near term, if oil prices lose momentum, we expect the 41.00 and 38.83 levels to hold up.
This new consolidation could see a possible breakout in the medium term. But given the current conditions, the bias remains mixed.