Last week's news headline, "OPEC sticks to production plan as high oil prices boost economy".
We could almost say oil is a necessity in our daily lives. For transport, for heating in cold countries.
Although we face high inflation, and a possible recession, would we expect oil to hit a point of demand destruction?
At this point, I doubt so. So there is a real possibility of oil prices hitting the high again.
Technical analysis wise, I am seeing a higher low into resistance.
On 18-19 April, it printed a head and shoulders at resistance on the 4H chart before heading back down to re-test the dynamic support, or the upward trendline. Expecting price to consolidate for a while at this area.
We could almost say oil is a necessity in our daily lives. For transport, for heating in cold countries.
Although we face high inflation, and a possible recession, would we expect oil to hit a point of demand destruction?
At this point, I doubt so. So there is a real possibility of oil prices hitting the high again.
Technical analysis wise, I am seeing a higher low into resistance.
On 18-19 April, it printed a head and shoulders at resistance on the 4H chart before heading back down to re-test the dynamic support, or the upward trendline. Expecting price to consolidate for a while at this area.
Comment:
Oil prices still holding strongly at resistance. But bearing in mind on the daily, the trend turned before it hit the major up trend dynamic support. This could be signaling stronger upside - a higher low into resistance.