Oil Recovers Bullish Momentum Towards $85 Per Barrel
Anna Coulling | Nov 02, 2021 10:21AM ET
Over the last week or so we have seen the price of oil retrace, but the pullback on the daily chart has simply been a minor correction in the longer-term bullish trend, as the $85-per-barrel price point remains firmly on the horizon.
This short-term reversal lower was as expected following the weakness signalled on Oct. 25, with the market struggling to move higher on excellent volume and closing with a typical shooting star candle that confirmed the sell-off. However, note the two candles of Oct. 28 and Oct. 29. On both days, the price of oil fell, but then recovered to close higher on the day and end with a deep wick to the lower body on excellent volume.
In fact, the price action on Oct. 29 gapped up to add further weight to the bullish momentum with a repeat performance.
The first day of the new trading week and of November opened muted, but once again, with the commodity heading upward to test the $85-per-barrel area, and currently is trading at $83.50 per barrel at the time of writing. The $85-per-barrel level is the key moving forward. If this is breached on good volume it is likely to provide the springboard for a further leg in the bullish trend.
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