Oil prices have been caught in a bit of a limbo over the past two days
From a technical perspective, it is all about watching for a firm break of key levels and to go chasing said break on either side as noted by the chart.
As things stand, oil remains underpinned above both key daily moving averages but is unable to firmly take out the 22 Nov high @ $58.74 and the 61.8 retracement level @ $58.65.
The high yesterday briefly caught a glimpse above those levels but price action has since retreated back to keep near tepid levels for the time being.
The worry for oil buyers right now is that a lot of the positive news from the OPEC meeting has been well documented and factored in at this stage.
It could potentially help to spark a 'sell the fact' play and the bigger worry is that if price starts to slip below the key daily moving averages towards the $55 level.
If sellers can chase a break beyond that, things could get a bit ugly in a potential move back towards $51 as seen at the start of October.
