Oil sits lower on the day after first test of $70 falls short

Technical Analysis

WTI down by 0.9% to $68.60 currently

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The $70 level is a key psychological resistance and that is keeping a lid on the latest bullish in oil over the past two to three weeks.

Price is backing away from the figure level to $68.60 currently but it surely will not be the last time oil runs up against said resistance level over the next few months.

The upside run looks to be running into some profit-taking but in the big picture, it is tough to handicap oil market sentiment at the moment.

The Iran issue is still a wildcard but with OPEC+ playing their cards right and the virus situation improving globally across major economies, the outlook is still solid.

There are a lot of punters pinning oil for a move to $100 in the year ahead and given how things are shaping up at the moment, it isn’t too far-fetched to be honest.

Sure, there will be risk factors evolving along the way but as things stand, the fundamentals are still working in favour of oil bulls at the moment and there’s no reason to turn the other cheek just yet.

Watch out for a test of $68 as that might attract some dip buyers before the next swing region closer to the $67 level.

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