A strong rebound
Oil prices have rebounded strongly over the last couple of weeks, with WTI coming within a whisker of $70 before profit-taking kicked in.
The pullback today was short-lived and after falling close to $67 it recovered the bulk of the losses to trade in between two key technical levels.
Above, $70 is an important psychological barrier that coincides with the 200/233-period SMA band on the 4-hour chart. This is also around the 55/89-day SMA band.
Below, the 55/89-period SMA on the 4-hour chart coincides with support over the last week that has been tested on a number of occasions this past week.
A breakout in either direction may indicate the direction of travel in the coming weeks.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.