Oil price has made an important low at 47$ yesterday and has also made an impulsive rise to 48.26$, while now it is moving sideaways…..
Oil was rejected at important resistance 49.41$ but both in the daily and in the 4 hour charts, price has respected Kumo (cloud) support from where it started a new upward move.
Price is making a higher low and if price manages to break above 49.41$ we will have a higher high confirming our bullish view for a move above 50$ towards 52$.
Even in the daily chart a sequence of higher highs and higher lows could be at its early stages now, so that we can expect price to extend towards 53$. Short-term key support for this view is the 47$ level while the 45.59$ is the most important support of all, because if this level is breached….we forget the move towards 52$ and start looking for a new low towards 40$
I’m currently long oil futures. Thank you for taking the time to catch up on my thinking.