Crude oil price has risen above the 200-day EMA for the first time since mid-November. The commodity edged higher amid the easing concerns over the Omicron variant. US regulators have cleared the COVID-19 pill by Merck & Co. The move has further alleviated fears over the strain’s impact on global oil demand.
Since late November, the resistance zone at 73 has been a steady one. Notably, WTI futures have surged past this level for the first time in four weeks. At the time of writing, the benchmark for US oil was up by 0.98% at 73.72.
On a four-hour chart, it is trading above the 25 and 50-day exponential moving averages. Besides, it rose above the long-term 200-day EMA on Thursday for the first time in over five weeks.
Upon the opening of US markets post-Christmas, crude oil price will likely remain subject to heightened volatility as has been the case since late November. However, I hold a bullish bias.
From this perspective, the range between the 25-day EMA at 71.75 and the resistance zone of 75 will be one to look out for. A move above the range’s upper border will likely push crude oil price to 77. On the flip side, a decline past the lower border will probably place the support zone at the psychologically crucial level of 70.
This post was last modified on %s = human-readable time difference 06:52