The commodity comes from two negative weeks, but starts the current one on the offensive, helped by the infrastructure bill that was passed by US Congress over the weekend. On Thursday, OPEC, Russia and allies – a group referred to as OPEC+ - had ignored calls for larger production increases and stuck to their output plan to add 400K barrels per day (bpd) in November.
The recent correction was shallow and respected the EMA200 on the 4-Hour chart, whereas today, the USOIL gains more than 1%. Given that, the recent 7-year highs ($85.42) remain at its crosshairs, but it may still be early for a new high and an advance beyond.
On the other hand, the RSI on the hourly chart indicates overbought conditions, which can lead to some downward pressure in the short term. As such, a retest of the aforementioned EMA200 (at around 79.70) could be likely, although fresh November lows (78.24) - and a sustained move below them – have a high degree of difficulty at this stage.
Past Performance: Past Performance is not an indicator of future results.
Past Performance: Past Performance is not an indicator of future results.
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