Oil continues to stretch rally above $56

  


WTI crude up 41-cents

Oil is higher for the second day as it trades at the best levels of October.

Crude continues to shows signs of a bottom at $50 and has extended today’s rally has high as $56.51. The climb started yesterday after US inventory data was tighter than anticipated. We also learned that Mexico has nearly completed its annual Hacienda hedge and that might remove a sources of selling pressure.

Technically, the next target on my radar is 57.19%, which is the 50% retracement of the post-Saudi attack fall. We’re going to need continued improvement in risk sentiment and trade to keep the momentum going to the 61.8% retracement and beyond. I’m doubtful but for now the trend is higher.

WTI crude up 41-cents

ForexLive



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