Oil prices are bullish with price action gaining over 3% on Tuesday.
The current gains came after oil prices managed to break out to the upside from the consolidation.
Price action is also trading above the 42.00 handle. As long as oil prices settle above this level, we expect further gains in the near term.
However, if crude oil loses the 42.00 level, then we might expect a correction back to the 41.00 level.
Establishing support here will renew the bullish bets for oil prices with a potential to break past the 42.00 eventually.