WTI back above 60 USD

22/02/2021

Today, oil rallied amid the Goldman Sachs upgrade, and the WTI benchmark was up nearly 3% during the US session, trading above the important 60 USD threshold.

It looks like the 60 USD level will be the intraday support, with dips toward this level expected to be bought. Another stronger demand zone might be in the 58.50 - 59.00 USD zone, where last week's decline stopped. 

The resistance could be at 61 USD, and if broken to the upside, further rally toward the current cycle highs of 62.30 USD could occur.

However, if oil stalls at these levels and starts moving lower, it could form a large head and shoulders pattern, which is a bearish formation.

We need to note that oil and copper are the best inflation hedges out there; thus, as long as there is gonna be this crazy money printing, both these assets could perform well. 
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