Crude oil is seen consolidating after the overnight recovery around the $53 handle during today's Asian trading session, as improved appetite towards risk assets offers some support to prices. The black gold looks to stabilize, having witnessed a sharp 2% fall a day before after the global markets were hit by a wave of risk-aversion amid global growth and trade concerns. The prices are also receiving support from OPEC output cuts that are aimed at reining in an emerging supply overhang.
Crude prices declined sharply after hitting a new high on Monday, falling 2% towards the $52 level before recovering. The price is currently consolidating above the $53 level with a not so assuring momentum as seen on the RSI chart. If the trend line presented on the chart was to be valid, we are most likely to witness a surge from this point in prices towards the $55 zone which will be our next main focus.
Support: 50.60 49.80
Resistance: 52.85 53.58