Oil Primed for Price Rally？

Author : Connor Woods, Senior Market Analyst

Date: June 1st 2022

Oil prices continue to yield profits for traders buying this market. Despite it seeming overstretched, the fundamental outlook remains robust. Check out this crude oil price analysis now.

Fundamental Outlook

Shanghai is lifting its COVID-19 lockdown as of today. This will allow people to leave their homes and drive their cars from tomorrow. This is demand that wasn't there last month.

Europe has also now slashed oil imports from Russia. It is necessary given the situation in Ukraine, but the effects will be long term and should keep oil prices high for a long time.

Technical Outlook

Oil prices were previously stuck in a range. However, the recent breakout has been an assured one, giving traders confidence this market can go much higher.

Look for prices to react from the imbalance at 112, and then moving on to test the mid 120's. This would yield a 1:3 risk reward trade if successful.

Everyone at Zenfinex hopes you are having a great trading week. If you would like to know more about the products we offer, feel free to visit www.zenfinex.com.

Author : Connor Woods, Senior Market Analyst 

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