Oil prices are on track to post a third consecutive daily gain. Price action has breached past the $50.00 level on 6 Jan.
However, the current pace of gains tests the trendline from below. This could mean that price action could make a modest retreat.
While the Stochastics oscillator is nearing the overbought levels on the daily chart, the oscillator is oversold on the 4-hour chart time frame.
This could potentially see price action pulling back in the near term. Initial support is at 49.00.