Oil prices are on an upward trajectory, buoyed by an optimistic demand forecast.
The price of WTI oil surged on Thursday, surpassing the significant psychological threshold of $80 and aiming for its first daily close above this mark since November 6th.
Positive sentiment in the near term received a boost following the release of the latest report from the International Energy Agency, which revised upwards its demand growth projections while trimming its supply forecast for 2024.
This data has brightened the outlook for oil in the short term, providing fresh momentum to its price rally, which has now extended for the second consecutive day. The market is now eyeing key resistance levels at $80.83 and $81.3, representing the 2024 high of March 1st and the 50% retracement level of the downtrend from $95.00 to $67.70, respectively.
Technical indicators on the daily chart indicate a strengthening positive momentum and a bullish configuration of moving averages, further reinforcing the bullish sentiment.
A daily close above $80 would signal an initial bullish trend, with a sustained breakthrough above $80.83 to $81.35 confirming a continuation of this trend and revealing a target at $84.57, representing the 61.8% Fibonacci retracement level.
The previously breached $80 level now serves as immediate support, with any downward movements ideally finding support above the rising 10-day moving average at $78.91.
However, caution is warranted in case of a failure to close above $80, which could indicate a prolonged period of sideways trading.
Res: 80.83; 81.35; 82.00; 82.21
Sup: 80.00; 79.55; 78.91; 78.20
