Oil prices rose to a two-month high on Monday, briefly rising above 35.50. But prices quickly gave up the gains.
The retracement will likely see support forming near the 33.66 level. A reversal off this level will support the upside bias.
Oil prices need to follow through by posting a higher high. Else, this could potentially keep price action subdued but supported above the 35.50 level.
There is of course the risk of a move lower.
A close below 33.66 could open the downside risk for a move towards the 27.95 level.
Given that support hasn’t been tested at this level, the 27.95 remains a prime target.
