Up 2.6% of the day and test the $50
The price of crude oil is settling at $49.78 on the day. That is up $1.26 or 2.6%. The high for the day reached just below the natural resistance level at $50 (high reached $49.95). The low extended down to $48.31. Hope for a US/China agreement has the market feeling a little more confident about a stall in the global slowdown.
Technically, the pair tested the 61.8% of the move down from the December high. That comes in at $49.89. A move above it, and the $50 level, will take the price into the $50 to $54.55 area that defined the range in the first half of December.
Until that break above, however, the highs we are seeing are against a topside resistance area.