The WTI oil was trading 2% higher on Monday, rising above 75 USD for the first time since early July.
The medium-term uptrend has been confirmed after jumping above the bearish trend line and the 50-day moving average. We can find the nearest support at previous highs near 74.40 USD, and as long as oil trades above it, the short-term outlook appears bullish.
Another demand zone could be at 72.70 USD. Overall, oil is looking very bullish, supported by the ongoing energy crisis in the UK and elsewhere.
Bulls need to push the price toward the current cycle highs at 76.85 USD. If oil closes above it, the long-term uptrend would be confirmed, targeting the 80 USD threshold in the immediate leg higher.
However, it looks like the short-term time frames could be overbought, considering the recent steep rise. Therefore, oil might consolidate somewhat near the critical resistance of 76.85 USD, but momentum is expected to be pretty intense once it breaks above it.
Inflation is still raging globally, benefitting commodities, and as oil has shown again, it is one of the best inflation hedges, much better than gold or silver.