Oil continues to rally, trades above 71.50 USD


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).
Cookie Policy: The Axiory website uses cookies and by continuing using the website you consent to this. Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please read the full Privacy Policy.