Explosive rally on oil

WTI oil has broken once again above the 50.00 level, but with a lot more strength, after Russia said that it agrees with OPEC’s plan to freeze oil production. The news has caused oil to rally to the 51.60 zone as shown on the daily chart. The price of oil may try to stall at the 51.60 zone, but the bullish momentum is still in place. Above the 51.60 level, it next resistance could be the 53.00 level. To the downside, in case the price retraces, the 50.00 level could act as its first support, but it may try to break it to reach the 48.00 level, which could act as a better support. The commodity is over-extended to the upside and that is why it is vulnerable to a bearish correction.