Crude tried to stage a recovery after Tuesday's free fall below the $46 handle, but Wednesday's peak at $48 sees prices struggling again ticking back into $47 as the energy sector continues to weaken. Yesterday's short recovery came on the back of a weaker Dollar, however, traders shifted their attention to the deteriorating fundamentals in the oil markets including more signs of slowing economic growth next year, record production, and the lack of confidence with OPEC’s pledge to curb production.
Crude oil prices received a strong support from the $45.76 level after the free fall during Tuesday's session, and a recovery has been triggered climbing back towards the $48.28 level. After recovering from extreme oversold state, the price is currently hovering just above the 47.03 level, however, if this level gets violated to the downside, we will be focusing on a retest of the recent lows.
Support: 50.86 / 50.17
Resistance: 51.98 / 52.53