Oil prices gave back the gains, closing in the red on Friday at 39.74.
Price action is likely to continue holding the sideways range between 41.00 and 38.83.
In the short term, we see a divergence building up on the Stochastics oscillator. This could trigger another run-up to the 41.00 level.
Given that the US elections are just a week away, the dollar strength will also impact oil prices.
A breakout from this sideways range could set the direction of the trend in the near term.
For the moment, the downside in oil prices looks limited, but that could change if price breaks down below the 38.83 handle.