WTI OIL Outlook: Bulls are on track for the longest positive run in 15 month

ANALYSIS | 05/21/2020 14:04:20 GMT

WTI OIL

WTI oil rose further Thursday and hit new highest level since 11 March, on track for the sixth straight day of gains and for the fourth week in green that marks the longest positive run in 15 months. Draw in US crude stocks (EIA report released on Wednesday showed the biggest drop in past six months), accompanied with OPEC+ production cut and drop of US oil rigs to record low, continue to inflate oil prices. Optimism that recovery would pick up after oil crashed below zero last month, as more economies are re-opening after pandemic lockdown, boost demand for oil and also inflate prices. Bulls target technical barriers at $36.08 (50% retracement of $65.63/$6.52) and $37.87 (falling 100DMA) violation of which would generate fresh bullish signal and expose psychological $40 resistance.

Res: 34.61; 35.00; 36.08; 37.87
Sup: 33.32; 32.34; 31.55; 30.00

Interested in Oil technicals? Check out the key levels

1. R3 36.58
2. R2 35.21
3. R1 34.41
PP 33.04
1. S1 32.23
2. S2 30.86
3. S3 30.06

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