Crude oil resumed the upside today and jumped to $76.90 hitting a fresh multi-year high, despite a stronger Dollar and a buildup in stocks. According to the EIA, Crude inventories jumped by a significant 8M barrel from last week versus an expected 1.1M barrel and not even that could've stopped the black gold from printing new highs. US sanctions on Iran are getting closer and traders are still betting that supply will not catch the demand.
After a long intraday consolidation, Crude oil prices gathered the momentum and headed to print new multiyear-high at $76.9 per barrel. This level was not seen since November 2014, however , a big divergence between the price and the momentum has occurred in the overbought zone. That implies to a relatively moderate correction in the prices is most likely to happen and we will be focusing on the purple trend line and the $74 level.
Support: 73 72.73
Resistance: 73.5 74.25