Oil Prices Surge Amid Bullish Signals
Solid ECN—Oil price returned from the $74.2 low when the stochastic oscillator signaled an oversold market. As of this writing, the pair trades at about $76.7, above the immediate support at $75.7. The technical indicators suggest the current uptick momentum should resume. Interestingly, the awesome oscillator adds to this bullish speculation.
From a technical standpoint, if the oil price holds above $75.7, the price will likely rise to the key resistance area at $78.1, backed by the 75-period simple moving average.
Conversely, if the bears (sellers) drive the price below $75.7, the $74.2 key resistance will likely be initially tested. Furthermore, if the selling pressure exceeds $74.2, the next support area will be the $71 mark.