Oil is heading to a new high in the 119.30 area. As long as Fed doesn’t change its policy on economic stimulation, the oil price should continue moving up until July.
Even though the time cycle for oil is in the last stage of a push move, external events continue to exercise a huge influence over speculative trading, and this is combined with increasing seasonal demand.
Current major support is around the 109.50 line. As long as price stays above this support level, 119.30 remains the upside target until mid-June.
This is an excerpt from the Naturus weekly Market Preview. To see the full preview, visit http://naturus.com
Oil – daily chart
