WTI Crude Oil (current price: $49.13)
Oil continued to show bullish signs, as the crucial commodity bounced back after Tuesday’s weak performance despite early losses during the day. Rumors surfaced about a possible deal on a production freeze between OPEC nations before today’s meeting by the organization. The news helped the afternoon bounce that was also favored by a rebound in risk assets in late trading. The key support is still at $47 in oil, and a break below that level could trigger a deeper correction.
Our assessment: Oil is trading in a narrow range and yet another break higher is still possible, despite the overbought momentum readings.
