Oil prices were trading bullish for two consecutive days through Thursday.
Price action settled at 48.28 heading into Thursday’s close.
For the moment, oil prices hang in the balance. With the trend line break from earlier last week, price action will now have to rebound and close above the trendline once again.
Failure to do so could, however, potentially open up the commodity towards a correction.
The initial support level comes in near 47.17. As long as the support level holds, we could expect to see some continuation to the upside.
However, if oil prices lose the 47.17 support and close below the previous swing low from December 23 or 46.10, then we could expect to see a drop towards the 45.26 major support level.