Since the ease of lockdown across different nations, oil price has been on a bull run. Price reached the highest level at $68.05 in March 2021. The last time price reached this level was in October 2018, before the pandemic.
The pandemic caused the price of CL_F to fall to negative prices. There were expectations that the price would rise before the pandemic and we wrote an article on the expected rally in oil price. The article published in 2019, says price could reach $69 per barrel. Using the daily and weekly chart, it was expected, but the pandemic brought about a reversal in price. However, in March 2021, the price reached $68.05.
The opening price of Oil in 2021 was at $47.20. Oil price was able to appreciate by over 44% this year. Since the price reached the highest level of $68.05 in 3years, price has been in a range. This could mean that $CL_F is consolidating. There are key pointers indicating that this is as a result of increase in Covid-19 variants which poses fresh threats.
Further pointers show the current oil price being greatly affected by a new disease named –Black Fungus linked with Covid-19 patients. Since March 2021, the ranging price of Oil has been between $57.28 and $68.05. Though price has been retesting more of the resistance level at $68.05.
RSI at three instances show that price has been overbought since December 2020. A reversal in price might occur, which might bring the price to $57.70 in a few weeks or months. Despite price movement in the lower region of the Bollinger bands at two times in the last 3 months, price is back to the higher region in the daily time frame.