Oil extends gains as Brexit fears recede

Crude oil prices extended Friday's recovery, with WTI futures approaching $50.00 a barrel, as receding Brexit fears underpinned commodities and stocks around the globe.

West Texas Intermediate crude for August delivery traded between $48.78 and $49.99 a barrel before closing at $49.91, up 1.35 or 2.78% on the session.

WTI technical outlook

“In the daily chart, the price is back above its 20 SMA, whilst the technical indicators head slightly higher around their mid-lines. The upward potential, however, is quite limited at this point given that gains beyond the current region still seem unlikely,” said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the technical indicators are beginning to look exhausted towards the upside near overbought levels, but also that they are far from suggesting the price may retrace. Additionally, the price is back above its moving averages, with the 100 SMA offering an immediate support around 49.20, the level to break to see the commodity shedding ground this Tuesday.”

Support levels: 49.20 48.55 47.90. Resistance levels: 50.00 50.65 51.30.