Oil continues to rally, trades above 71.50 USD

14/06/2021

As we have mentioned many times previously, oil is one of the best inflation hedges, and the commodity continues to perform pretty well.

It was another 1% higher on Monday, trading above 71 USD, the levels last seen in October 2018.

From the medium-term perspective, as long as oil trades above previous highs in the 66.60 - 67.60 USD region, the outlook remains bullish. The long-term trend also seems bullish.

From the intraday perspective, the most important support is at 70 USD, and dips to this level are expected to be bought. The 8-day EMA is also slightly below this level. 

Alternatively, the short-term resistance could be at 72 USD, followed by the second target for bulls at 75 USD.

The CPI inflation jumped above 5% recently, which should be very positive for oil until the rise in consumer prices starts to slow down (probably not anytime soon).
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