Oil prices have lost more than 7$ the last few weeks and we warned on time with this post, that a pull back was very close with 68-69$ as minimum targets. Oil price has reached the upward sloping support trend lines and we are now starting to initiate longs once again.
Yes there is a chance we see Oil price towards 63-62$ but if we break above 68.60$ the low will be in and the next leg higher for a move towards 80$ will have started. I’m not going full longs at current levels but I only have started building a long position. Gradually and will add at lower support levels or with a break above 68.60$.
Short-term support is at 65.50-65.40$. Break below it and we could see 64.50$. Resistance at 66$. Break it and we could see a move to 66.70$-67.30$. Major resistance as noted above is at 68.60$. Bulls need to break 68.60$ for trend to change back to bullish.
Bears should not get too overconfident now and should look to protect their profits. I’m turning neutral to slightly bullish from bearish.