Oil extending Thursday’s recovery, rises to $49.25

WTI crude oil prices rose on Friday to $49.25, extending its recovery from Thursday's dip below $48.00 mark led by a weekly drawdown in US crude stockpiles.

On Thursday, oil turned negative and dropped to below $48.00 on news that OPEC member have not reached an agreement on setting a production ceiling. The black gold, however, recovered sharply from lower levels after EIA reported that US crude stockpile fell 1.4 million barrels in the previous week. 

However, in absence of any major fundamental triggers, the commodity seems to have stagnated its bullish momentum near the much talked about, $50.00/barrel psychological mark. 

Of late, the ongoing bullish momentum in oil prices stagnated near $50.00 psychological mark in absence of fresh fundamental triggers. Going forward, traders will now be watching the US non-farm payroll data to be released later today in order to grab some tradable moves in the commodity.

Technical levels to watch

On the immediate upside, the commodity might continue to confront resistance near $49.60-65 zone, which is followed by an important resistance near $50.00 mark. A sustained trade above the $50.00 mark important resistance now seems to pave way for further appreciating move for the commodity towards Oct. 2015 highs resistance near $51.35-40 area.

On the flip side, $48.75-70 zone now seems to have emerged as immediate support. Failure to hold this immediate support seems to drag the commodity back towards $48.00 handle, below which the near-term corrective move could get extended till a previous resistance, now turned strong support near $47.00 level with intermediate support near $47.40 area.