Crude Oil Stands Above The 49.30 Zone With Warning

Crude oil: The commodity closed strongly higher the past week holding above its key resistance at 49.30 and opening the door for more strength in the new week. However, we may see a pullback as a rejection candle is now seen on the daily chart after its Friday negative close. On the downside, support resides at the 49.00 level where a break will expose the 48.00 level followed by the 47.00 level. A cut through here will aim at the 46.00 level. Conversely, resistance is located at the 50.00 levels where a break will expose the 51.00 level. A break above here will aim at the 52.00 level and then the 53.00 level. Its weekly RSI is bullish and pointing higher supporting this view. All in all, Crude Oil remains biased to the upside on more strength though with caution