FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
Libertex information and reviews
HFM information and reviews

Are Oil Bulls Unstoppable?

9 March 2022 Written by Lukman Otunuga  Senior Research Analyst at FXTM Lukman Otunuga

Oil prices have hijacked the financial market headlines by surging to levels not seen since 2008. Brent crude punched above $131 on Tuesday as the United States and Britain moved to ban oil imports. Given how such a move is likely to squeeze supply and create further disruptions in the global energy market, this could propel the oil prices even higher. Since the start of March, both WTI and brent have appreciated over 30%. With oil gaining roughly 65% year-to-date and slowly approaching all-time highs, the next few days promise to be eventful for the global commodity.

Directing our attention away from the fundamentals, the technicals are heavily bullish on the daily, weekly, and monthly timeframes.

Oil’s explosive momentum on the monthly timeframe resembles a speeding train reaching maximum velocity with geopolitics keeping the engines running at maximum capacity. Things are looking incredibly bullish with the first key level of interest being the all-time high at $147.50. A breakout above this level will open the doors to uncharted territories. If the upside momentum runs out of steam, a decline back towards $115 could be on the cards.

Looking at things on the weekly charts we see a similar story. Prices were already respecting a bullish channel before geopolitics injected bulls with renewed confidence. There have been consistently higher highs and higher lows while the MACD trades above zero. The next major checkpoint for bulls remains the all-time high at $147.50. A failure to push beyond this point could result in a decline back towards $115 and $100, respectively.

A throwback could on the horizon for brent if $131 becomes a resistance level. Such a development may take prices back towards $118 and $100 before bulls re-enter the scene. The trend remains firmly bullish on the daily charts with lagging and leading indicators signalling further upside. Should the fundamentals continue supporting oil bulls, the path of least resistance should remain north.


Share: Tweet this or Share on Facebook


The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast
The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast

Before getting down to analyzing why Euro reminds of a mafia victim in cement shoes falling off a Chicago bridge, allow us to open it up with a meme joke that best describes this whole ordeal...

30 Nov 2022

Why is western media so positive about the Chinese stock market?
Why is western media so positive about the Chinese stock market?

Premium news sites in the US and Europe are now saying that everything is suddenly going right for China’s stock market. Headlines announced Hong Kong stocks...

28 Nov 2022

Markets quiet down on Black Friday
Markets quiet down on Black Friday

The trading action in financial markets remains subdued amid thin volumes on Black Friday. Following the Thanksgiving Day holiday, bond and stock markets will close early...

25 Nov 2022

Football Stocks Scoring This World Cup
Football Stocks Scoring This World Cup

The 22nd education of the FIFA World Cup is scheduled to take place this year in Qatar from 20 November to 18 December 2022. This marks the first-ever World Cup held in an Arab nation and the second...

22 Nov 2022

Is GOOGL breaking out?
Is GOOGL breaking out?

After a long and bearish year for Alphabet Inc, the GOOGL chart shows a possible reversal. Is it just a brief resistance along the downward trend, or is there something...

21 Nov 2022

The impact of football on the stock market
The impact of football on the stock market

Football is one of the most popular sports worldwide, and has won the hearts of millions. The game brings together people from different walks of life, impacting not only the emotions and hearts of fans...

17 Nov 2022

Editors' Picks

FXCM information and reviews
ActivTrades information and reviews
RoboForex information and reviews
MultiBank Group information and reviews
MultiBank Group
FxPro information and reviews
Vantage information and reviews

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.