Crude oil seems to have managed to curb the sell off on the support level at $42.50. This is the same barrier that also contained the barrel’s losses on Christmas Eve in 2018, when stock exchanges and stock markets also suffered widespread losses. If this support manages to contain the price, this would be the first sign that the downtrend has reversed and be an early indicator of a recovery in oil consumption. From a technical point of view, a first target for long positions is the 50-day moving average.
