Oil rebounds back above $68 as buyers manage a defense of key technical levels

Technical Analysis

Author: Justin Low | oil

Oil is trading up by over 1% to just above $68

Oil has endured a bit of a torrid past one week, with Monday's drop a heavy one as price fell past $70 all the way down around $66.50. That said, buyers managed to keep a defense of the trendline support and 100-day moving average (red line) and those two levels have played an important role technically in allowing for the bounce today.

As risk sentiment improves in the past few sessions, oil is turning things around with a solid bounce of a little over 1% now to $68.05 again.

The flush lower since the start of the month is arguably a "healthy" one amid the unrelenting push higher this year and the OPEC+ agreement was a convenient excuse in that sense for profit-taking and a retracement.

Oil fundamentals are still solid and this bounce may prove to be more lasting if risk sentiment can keep up as well. A flush lower towards the May lows @ $61.58-70 may attract more buyers but amid the key levels above, it is also a solid area for buyers to step back in.
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