The oil price is ready for further growth, and this year it might consolidate in the area of 7075, not ruling out bounces up to 85.

The rally in early November overheated the price by March, which turned out to be a natural correction from the peak levels of the previous month. The price corrected by 15 from the peak, where it received support. Despite the bull and bear manoeuvres, subsequent lows and highs were higher than previous ones.

The support signal was given by the 50day simple moving average, attracting buyers and pushing the price up. The 50day average is the mediumterm trendline, which is now clearly bullish.

Earlier in April, Oils attempt to break away from the uptrend support line was halted at 67.50 per barrel of Brent, where a strong selloff started in March. Gradually gaining strength, the price has now returned to that level, making a second attempt to break away from the moving average.

Many would agree that Oil has a high chance of rising significantly. The pullback in March knocked the local overheating out of the market, clearing the path for a further rally after the correction.

For cautious traders, confirmation of further bullish momentum would be when previous highs near 70 for Brent are surpassed.

Should the bulls succeed, quotations may head towards the upper boundary of the next 7075 range rather quickly. A strong recovery in major developed economies and continued soft monetary conditions could send the price looking for a ceiling to…