Support At $47.70 Remains Strong

Oil continues to trade near the $48 level, and it should be noted that volatility decreased in recent days. The support at $47.70 has been once again tested during the current trading session and proved its strength. At this point, it looks that a move below this support level may present a near-term problem for the bulls.

On the upside, oil needs to settle above the resistance at $48.65 in order to continue the move towards the $50 level. It remains to be seen whether oil will manage to gain momentum in the remaining days of this year or serious action will be postponed into the next year.