Oil flirted yesterday with 50.07 around the breakout's primary objective, which breaching will send it to 51.54. Although, the bollinger bands are still widening, Oil is breaking them up, with today's opening above the bollinger bands. It reflects how strong the bullish market is. Only a retreat below 47.84 will reject the bullish movement, and send the commodity south to 46.29.
On a daily scale, breaking out 50.14 will send it to 50.6, as a part of its rally to 51.54. Failing to do so, will send Oil back to 48.93, which breaching will send it south to 48.2, with 48.64 as a primary objective.
The daily Pivot Point is around 49.08. The daily support levels are around 48.10 and 46.77. The daily resistance levels are around 50.41 and 51.39.
let's be realistic, there's been a huge capex cuts, it's likely to continue it's bullish move imo; but there will certainly be more volatility prior to that as nothing goes up in a straight line and there's profit taking and agree that it could send it back to about 46ish.
ACTIV8X
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Oil is still going through a lot of changes, as the shale boom created hopes for many to invest in the industry to found themselves in the end confronting a collapse in the commodity's prices. The cuts in Capex helped sustain prices, but it came to the detriment of thousands of jobs that were projected to be created, as well as hundred of millions in expected ROI for investors, who found themselves caught up in the middle with their money on the table... Then, macroeconomic headwinds bumped in and made the oversupply issue even worse, leading to further cuts in Capex. So for now, the breakout was rough and the rally was swift, which is very interesting for profit taking... As you said it, nothing goes up in a straight line...