Crude oil price broke higher at the start of the month, and the bullish price action continues. The market kept pressuring against horizontal resistance and the measured move suggests $75 is just around the corner.
Last week, the news that the US has lifted sanctions against some of the Iranian individuals led to a quick decline in both the WTI and the Brent markets. However, the dip was quickly bought, but it did tell us that the market is stretched at the current levels and a possible Iranian nuclear deal involving the lifting of oil sanctions might weigh on the market.
The ECB has lifted its growth outlook last Thursday, both for this year and for 2022. The upgrade confirms the global economic recovery after the COVID-19 pandemic and that offers a tailwind for the price of oil. Stronger growth means increased demand and thus offers a bullish prospective for gold.
An ascending triangle reveals the price action pushing against horizontal resistance before breaking higher. The market does not typically retest the resistance, and the measured move equals the longest segment of the triangle. Bulls may want to stay on the long side until $75 with a stop at $68.
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