Last year we saw the oil price plummet to levels as low as $10.35 a barrel. This was due to the breakout spread of the corona virus which saw the world come to a shutdown. This drastically affected economies and especially the oil market.

Oil daily chart 8 Janauary 2020
XTIUSD daily chart 8 Janauary 2020

Since then we have seen a slow but consistent rise in price with the pair trading at level 50.01 .We last reported on this pair on the 22nd of December 2020. In that post we saw price find resistance at its previous higher high which was set at level 49.33 .Today price has long surpassed this level. The Oil price action shows possible bullish signals.

XTIUSD H4 chart 8 Janauary 2020

We predict that we could see price test level 55.36 .Our analysts have marked this as our new target level. Possibilities are that we could see price find resistance at this level. However if price fails to move past level 50.01 we could see it retrace to level 49.33

NB: Warning Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consider position sizing before entering a trade and manage your risk accordingly. Please read the risk warning before deciding to trade the markets.

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