- The price of oil is trending up on Friday, albeit to a limited extent.
- Stocks are up but remain far from the highs of the week.
The WTI (NYMEX futures) is up about 0.5% on Friday, validating modest weekly gains. The price reached $ 42.35, before falling back towards $ 42.00.
The bags go up but they do it in a moderate way. A weak dollar on Friday coupled with some modest optimism among investors lends support to crude. Concerns about the impact of the new activity restrictions to curb the increase in COVID-19 infections, is being overshadowed by advances in the vaccine and the expectation of more fiscal and monetary stimuli.
Differences on Thursday between the US Treasury Secretary and the Federal Reserve on the need to continue with emergency programs did not have much of an impact.
The WTI price is consolidating around $ 42.00. A firm break above $ 42.50 would point to further raises and a possible test to the key $ 43.00 zone. Although the rises are being limited by the mentioned levels, the decreases are even more so. The longer the break to the upside is delayed, the chances of a downward correction will increase. At $ 41.20 is the first relevant support, and below it will follow $ 40.00.
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