Oil prices were trading bullish on Thursday, gaining over 2% intraday.
The gains pushed oil toward the 41.00 level before pulling back. Failure to breakout above this level cements the view of the strong resistance here.
We could expect price action to pullback lower as a result. The previous price level near 38.835 will likely be tested for support again.
As long as this level holds, we could see oil prices maintaining a sideways range for the moment.
But a close below the 38.83 region could see further declines coming. The previous lows near 36.51 will be the next target.