Global Demand Woes Impact Oil

2 gru 2021

Oil is still very bearish but does appear to have settled for now, finding support at our level at 64.86. We have gotten a small boost here but are seeing some resistance as confirmed by a red triangle on the KRI just above 66.84. We are currently in roughly the midpoint of a range extending from 64.86 to 69.67. The Kovach OBV is extremely bearish, and starting to look over sold. But with global demand worries due to the new Omicron strain of the Coronavirus, we don't expect a rally any time soon. That being said we could see a relief rally potentially as high as the 70's, with 72.99 a particularly auspicious target.