Oil manages to hold and rebound from $46.00 support

WTI crude oil is attempting a recovery from a multi-week lows support near $46.00-$45.90 region and has now moved-off session low level to currently trade around $46.50 region. 

On Tuesday, oil got slammed on Brexit-led concerns of a global economic slowdown that would eventually lead to lower oil demand. Moreover, stronger US Dollar also attributed to the black gold's sharp slide on Tuesday.  

The downward momentum continued till US opening session when the commodity managed to stage a recovery as markets now await for fresh impetus from the FOMC meeting minutes, slated for release later during the day. 

Meanwhile, the release of API report on weekly US crude supplies might also provide some immediate momentum play ahead of the official EIA's weekly inventory data on Thursday. 

From technical perspective, oil is rebounding from its immediate strong support around $46.00 area, marking 23.6% Fibonacci retracement level of $27.73-$51.64 up-move. Hence, a decisive break below this immediate support would signal the onset of near-term corrective move for the commodity. 

Technical levels to watch

From current levels, $46.00 handle remains key support to defend, which if broken decisively would pave way for further near-term corrective move for the commodity, even below $45.00 psychological mark support, towards $44.50 horizontal support. On the flip side, momentum back above $47.00 round figure mark now seems to confront strong resistance near $47.30-40 area, above which the black gold seems all set to reclaim $48.00 level and head towards testing its next major resistance near $49.50-60 area, just below the very important $50.00 psychological mark resistance.