Oil outlook: Rising demand and geopolitical tensions continue to inflate price
WTI
WTI oil price hits new seven-week high on Friday, keeping firm tone and on course for the second consecutive weekly gain.
Improving demand was signaled by fall in the US fuel inventories, as summer driving season in the world’s biggest oil consumer starts, while growing tensions in the Middle East revive supply fears, with both factors inflating oil price.
Bulls continue to hold grip and focus on their next targets at $81.82/$82.15 (61.8% retracement of $87.61/$72.46 / daily cloud top), but likely to face increased headwinds here, as daily studies are overstretched.
Dips should be limited as overall picture on daily chart is firmly bullish (strong positive momentum / multiple MA bull-crosses with the most recent being 10/200DMA golden-cross) and fundamentals remain supportive.
Daily cloud base ($80.23) and psychological ($80, reinforced by 55DMA and broken Fibo 50%) mark solid supports which should ideally contain dips.
Res: 81.82; 82.15; 83.28; 84.03.
Sup: 80.60; 80.23; 80.00; 79.66.
Interested in WTI technicals? Check out the key levels
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
