WTI has a rollercoaster ride last week as it tumbled around 6 dollars but managed to fully recover and ended with a small gains.
The selloff is largely due to the OPEC+ effort to increase oil supply to stabilize the oil price but still, it has been outweighed by the growing inflation expectation globally.
However, there was some significant breakout of the bullish structure such as the breakout of the bottom of an 8-month rising channel and a strong rejection from the major equilibrium level 77.
As such, we might experience a period of ranging market between 77 and 65 for another couple of weeks.
This week, we will first look for selling opportunities since the price is currently at the upper band of the current range and may face rejection at the current neckline level as well as the bottom of the previous rising channel.
However, we still maintain a overall bullish view for the simple fact that inflation will continue to rise amid a global recovery from the pandemic.
The selloff is largely due to the OPEC+ effort to increase oil supply to stabilize the oil price but still, it has been outweighed by the growing inflation expectation globally.
However, there was some significant breakout of the bullish structure such as the breakout of the bottom of an 8-month rising channel and a strong rejection from the major equilibrium level 77.
As such, we might experience a period of ranging market between 77 and 65 for another couple of weeks.
This week, we will first look for selling opportunities since the price is currently at the upper band of the current range and may face rejection at the current neckline level as well as the bottom of the previous rising channel.
However, we still maintain a overall bullish view for the simple fact that inflation will continue to rise amid a global recovery from the pandemic.
