Oil prices are muted today following the breakout above the 40.50 handle. Price action is down 0.6% on the day, intraday.
We could expect the 40.50 level to be tested once again. There is also a good chance that oil prices might pullback even deeper, to close below the 40.50 handle.
This would mean that oil prices will once again remain in a sideways range below the resistance level while being supported above 38.00.
To the upside, the resistance level at 42.00 will be the next key target for the commodity.
