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Oil bounced from weekly support last week

EURGBP Tech analysis by Simon Kazinsky on 06:31 June 25, 2018 EST

After the OPEC agreement at the end of last week WTI oil ramped up by more than 2% in a session to climb near the $70 a barrel mark.

The structure remains very constructive and now there is a good base in the $64 region for bulls to increase their position with a clear stop loss. Retail traders are also short at a 60/40 ratio.

On the other hand stocks appear to be waning and if they are loosely connected to the real economy this would mean that, if their weakness remains, oil would have head winds to continue its ascend.

If ultimately the $64 level would give way this would open the door for a test of the other relevant moving average supporting the bullish oil structure which presently sits at $54 and rising.

For the time being the bearish case would be to short with a stop loss above the present high in the $73 region.