Squawk / 18 March 2016 at 3:09 GMT
Global Investment Analyst / Rivkin
Oil prices closed strongly higher on Thursday, up US$1.74 (+4.52%) at US$40.20 per barrel for the April 2016 contract.

On the daily chart, price is now moving towards the resistance zone between US$41.93 and US$43.78, marked by previous lows and containing the 61.8% Fibonacci retracement level of the November to February decline. While price may continue higher in the near term, momentum indicators are highly overbought suggests the risk of a pause or pullback is increasing. Below current levels there is noted support zone between US$36.28 and US$34.90, marked by recent highs. Given the impulsiveness of the recent rally, any declines towards this region are likely to be corrective.

While the outlook continues to significantly improve, we await a pullback from current levels before updating our outlook to bullish.
ozy ozy
I expect a pulldown starts from today..profit takes and a correction down.. today's rig count data may tirgger down side move, I expect some rig count rise this time.


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