Oil holds above $60, but the rally loses momentum

The rally in oil is definitely impressive, but to continue, the price has to break through and keep above $ 60. This is shared by analyst Louise Yamada.

Reducing world oil supplies this year has only affected bullish feedstocks, with the WTI price circling around a new five-month high. But due to political and geopolitical factors, the upward movement proved to be quite volatile.

Yamada, who heads Yamada Technical Research Advisors, says there is a serious challenge ahead of oil, which currently limits the upward movement.

“Around $ 60- $ 61 is a massive support that will come in every move down, I expect this level to stand by, followed by consolidation before the new upward movement begins, so $ 60 remains a key level to track.” – says Yamada. At the same time, $ 64 a barrel turns out to be a difficult breakout resistance.

What the analysts expect is also the “golden intersection” between 50 and 200 – the daily average creeping average, with the price already going to have pierced $ 65 and confirm the bullish signal.

Source: CNBC

 Trader Martin Nikolov

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