Oil Now Set To Pick Up The Pace Towards $85 Per Barrel
Anna Coulling | Jun 08, 2021 01:53AM ET
For an analysis of oil, I’m staying with the weekly chart as this really does make the technical picture extremely clear, and one which I have focused on many times in the past.
Last week was a seminal one for the commodity and as such we can expect to see the bullish trend pick up momentum and take the price of WTI firmly through the $70 per barrel level and on towards $85 per barrel in the longer-term, as it hits the highs of 2018 once more.
And the reason I remain focused on the weekly timeframe is to highlight the importance of the resistance at $66 per barrel as denoted with the red dashed line of the accumulation and distribution indicator.
This is the level that has been so obstinate and, therefore, key to the development of the longer-term bullish trend.
It managed to hold oil prices at this level for several weeks, hence the significance of last week’s candle which closed with a nice wide spread candle on reduced volume owing to the National holidays in both the UK and the US.
With this level now finally breached, we can expect to see the price of oil continue to climb, even more so given the low volume node now ahead on the VPOC histogram, and so the journey to $75 per barrel should be relatively straightforward—and one for which the effort required will be lower.
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