Technical Analysis of Oil
Crude hit an eight month high above $121 in early trading on Monday 20th after Iran cut its exports to Britain and France and China’s central bank cut the required reserve ratio of banks to boost the lending capacity supporting demand outlook for oil. Crude is trading in an established uptrend since the beginning of February. Despite some profit taking in early trading the bullish trend is further supported by the weakening US Dollar Index, favouring long positions with target at $121.8. In the alternative scenario, the downside breakout of $119.3 could open the way to $118.25 and $117.62.
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