As we have mentioned many times previously, oil is one of the best inflation hedges, and the commodity continues to perform pretty well.

It was another 1% higher on Monday, trading above 71 USD, the levels last seen in October 2018.

From the medium-term perspective, as long as oil trades above previous highs in the 66.60 – 67.60 USD region, the outlook remains bullish. The long-term trend also seems bullish.

From the intraday perspective, the most important support is at 70 USD, and dips to this level are expected to be bought. The 8-day EMA is also slightly below this level. 

Alternatively, the short-term resistance could be at 72 USD, followed by the second target for bulls at 75 USD.

The CPI inflation jumped above 5% recently, which should be very positive for oil until the rise in consumer prices starts to slow down (probably not anytime soon).

Source: https://www.axiory.com/technical-analysis/oil-continues-to-rally-trades-above-71-50-usd

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About Author

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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