Oil Stays Bullish, Targets 73.00 USD

The price of oil has recently been moving gradually higher, as a result of hurricane Florence and a weaker US Dollar. It was also stronger on Thursday, changing hands around 71.75 USD, some 0.40% higher on the day.

Bulls managed to push the price above the first strong resistance of previous highs, which was located at 71.00 USD. This is now the main support and ― as long as oil remains above this point ― the short-term outlook appears bullish.

The next target for this wave might be considered around 72.80/73.00 USD where May's tops are located. If the current upward momentum persists, oil could attack the current cycle highs near the psychological level of 75.00 USD.

On the downside, should the mentioned support of 71.00 USD fail, further decline could occur toward the bullish trend line, currently near 69.20 USD. The momentum indicator is also moving higher and remains above the bullish trend, suggesting further upside potential.

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