Oil near cycle highs, trend remains bullish.

10/12/2020

The WTI oil was up another percent on Thursday, and it was trading at around 46.20 USD during the US session, close to its cycle highs of 46.55 USD reached earlier in the week.

Therefore, the current resistance is at this week's highs of 46.55 USD, and if oil jumps above that level, another leg higher could occur. The psychological target of 50 USD could be in play soon. 

Until then, the 49.50 USD level should act as another selling zone.

Alternatively, if oil starts to plunge, the key support seems to be located at December lows of 44 USD, and if broken to the downside, the short-term outlook could change back to bearish

There is also a short-term uptrend line near 44.60 USD, where bulls should be trying to but at better prices. Another strong buying zone might be located at Summer highs of 43.60 USD.

The world's economy's fundamental outlook is getting more gloomy again as winter lockdowns are fully in place in many countries. On the other hand, central banks are in a full printing mode, supporting commodities, and oil might continue to rise amid inflation pressures. 
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