Oil prices are down over one percent on Thursday. The declines come after the commodity rose to intraday highs of 62.22 before giving back the gains.
The overall bias in crude oil remains to the upside. Therefore, unless there is strong evidence of a correction, price action is likely to remain bullish.
For the moment, the immediate trendline will be key to watch. A break down below this trendline could potentially accelerate short term declines.
The main support level is near the 57.35 level. A close below 60.87 could potentially see the short term correction taking place.
However, if oil prices manage to reverse the current gains, we could expect to see further upside in the near term.