WTI keeps the constructive outlook – UOB

According to analysts at UOB Group, the prospects for the barrel of WTI remain positive for the time being.

Key Quotes

“WTI has likely registered an important low at $42.05 in late June. The initial tentative recovery from the low has morphed into a strong trending rally that easily sliced through several strong resistance levels. Strong and impulsive momentum suggest further gain is likely in the days ahead”.

“The immediate levels to look out for are May’s peak of $51.12 (daily close) followed by $53.12 (highest daily close in April). While it is early days yet, a clear break of these levels would open up the way for a move towards the year-to-date high at $54.48 (highest close in February)”.

“In order to maintain the current impetus, WTI should continue to march higher and pull-backs are expected to be brief and shallow. Support is at $48.80 but only a move back below $47.60 would indicate that a temporary top is in place”.