Oil Faced Strong Resistance Near $48.65

Oil made an attempt to settle above the resistance at $48.65 but failed to gain sufficient upside momentum and pulled back closer to $47.70. If oil manages to settle below $47.70, it will head towards the next support level at $47.30. It should be noted that oil’s volatility will be limited ahead of holidays so traders should not expect big moves.

On the upside, oil needs to get above $48.65 to continue its upside move. The next resistance level is located at the recent highs at $49.40. A successful test of this level will push oil towards the $50 level.