The U.S. crude oil is currently trading at around $81.25 a barrel. It is on course for a second consecutive green week.

The U.S. crude oil is currently trading at around $81.25 a barrel. It is on course for a second consecutive green week, as Chinese optimism continues. It did finish in the red on Wednesday but recovered some of the gains yesterday, another short-term dip may occur before heading higher. Towards the downside, support sits at $80.53 (20-day MA) then at $79.01 (50-day MA) then at $78.44. A break below $78.44 could result in a reversal trend. However, bias remains bullish, therefore, resistance sits at $81.54, then at $82.16 then a key level at $82.65 (orange oval). A break above $82.65 could see the price of oil hike towards the $83-$83.50 level. If not today, then potentially at the start of next week. Looking at the technical indicators on the 4 hourly timeframe, MACD is turning positive and RSI reads 61.