Oil defending steep uptrend line


The price of oil has been consolidating recently. The WTI benchmark has been trading at around 37 USD for the better part of June.

On Thursday, it was seen slightly above this level during the London session.

It seems that investors remain optimistic about the summer holiday season, which could lead to a higher demand for oil, and therefore a new equilibrium could be reached, at least from the medium-term perspective. 

The price managed to hold the steep uptrend line from the recent lows, which could be a bullish sign. The first resistance is at the current swing highs of 39.50 USD, and if the price breaches this level, we could see a leg higher toward the 200-day exponential average, which is near 40.80 USD.

However, the main target for bulls could be at 41.50 USD, which would mean the entire large bearish gap from the beginning of the March would be filled.

Alternatively, the support could be seen at the uptrend line near 36.70 USD, and if not held, we could see a larger correction to 34.50 USD or possibly toward 30 USD. 
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