Crude oil prices are trading weaker on Monday after prices rose past the 49.00 level on Friday.
The declines in the commodity currently reflect the market sentiment.
Also, the strong gains in oil prices over the past few weeks make it ripe for a correction.
Oil prices are testing the 10 Dec close of 47.17. We expect prices to trade flat near this level as the support holds.
A rebound off this level is likely, but following that, oil prices will need to make a rebound.
Furthermore, if no new highs are formed, then we expect to see prices consolidating near the current levels.
If the 47.17 level fails, then oil prices could be looking at a deeper correction down to the 45.26 level of support.
