It has been a good day for oil so far, and the WTI benchmark was 1.5% stronger during the US session, changing hands at 70.50 USD and rising to one-month highs.
On its way up, the black gold managed to push above the 50-day moving average, currently near 69.60 USD, confirming the bullish bias and setting the short-term outlook to bullish. Additionally, staying above the psychological level of 70 USD is also supporting the bullish case.
Lastly, the price managed to rise strongly above the bearish trend line, which had been limiting oil since July, ending the medium-term downtrend.
Oil is now trying to close above the resistance of 70.55 USD, possibly leading to another leg higher, targeting the 74 USD zone.
Alternatively, there are several strong support zones - the psychological barrier at 70 USD, the 50-day average at 69.60 USD, and the broken trend line at 69 USD. As long as oil trades above these supports, dips could be bought, and the short-term outlook looks bullish.