Crude on Nymex is currently trading at $47.38 zones. Crude has been consolidation in a range among $44 to 50 for last few days. A potential inverse head and shoulder pattern is visible on 240 minutes chart and confirms above a 49.80-50$ zones. Recently 5 periods moving average has crossed above 13 periods moving average on this chart and both short term moving averages are staying above 50 periods moving average hints strength in this counter. 14 periods RSI is fluctuating among 40 and 60 levels suggests a sideways momentum.
Outlook remains sideways until we get a clear breakout above $50 whereas breakout above $50 would call for a rally towards $52.50-54.50 zones. Areas of $46 to 45.50 would remain in focus to keep this pattern valid and any failure of those levels may trigger sharp declines in this counter.
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