Oil bullish momentum gains traction, reclaim $49.00 mark

WTI crude oil jumped above $49.00 as global financial markets cheered the latest Brexit polls that showed support leaning towards the 'Remain' camp. 

Currently trading near session peak level, at $49.15, Monday's up-move has been supported by a global risk-on rally, led by rising expectations of the UK remaining within the EU. When considered in conjunction with Friday's up-surge, the commodity has now recovered nearly 7% from a five-week low of $45.81 touched in the previous week. 

In the past couple of weeks, the black gold had reversed sharply from a multi-month high level on renewed worries over global supply following the resumption of oil production in Canada. However, weaker US Dollar now seems to boost demand and extend support to dollar-denominated commodities, like oil.

Technical outlook

A sustained momentum above $49.00 level should boost the commodity immediately towards $49.50 horizontal resistance, which if cleared should assist it back above $50.00 psychological mark. On the flip side, should some short-term profit taking kick-in, the black gold now seem to find immediate strong support around $48.00 mark. A decisive break back below $48.00 mark might negate any bullish expectations, thus increasing its vulnerability to drop back towards $46.30-25 support region.