Buy and hold still a strategy for Oil?Published On: 10 October 2021, 7:30 PM | Jason Chua, Dealer
Oil prices have been on a strong uptrend the entire year, increasing more than 50% year-to-date. With winter coming up, we could expect an increase in the demand for crude in the next few months. OPEC mentioned last week that it would stick to its existing pact of a gradual increase in the oil output despite the lack of supply. Looking at it from the demand and supply, we could expect oil prices to continue going up.
Looking on technical, the price is currently trading near its 5 years high, and we could expect some resistance before we could see further upside on the prices. However, key price level of $80 appears to be broken through quite easily. We might see a slight retracement back to the $77.5 level before further continuation on the uptrend. Price would remain bullish unless key support levels are broken.
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