Oil Prices Oil Prices Likely to Remain Buoyed
Looking ahead to the month of October, we can expect the bullishness to continue in the coming month though the speed of the moves is likely to be slow and steady. The important region to note during this month would be between $53 and $55 and this is the region that has held the prices many a time before. So, the oil bulls are expected to find the going tough once again when they get into the region.
We still maintain our medium term target of $55 though it now looks much closer than it was a few weeks back. On the other hand, if the bull trend sustains for some time longer, we could even be looking at $60 and beyond in the medium term. As we have been mentioning many times before, any correction in the oil prices is likely to be met with a lot of buying and the traders should also view it as an opportunity to buy. We expect the regions of support to be around $50 which should be the first price region that is likely to hold the prices. If and when the oil prices reaches $55, that is the time when the traders are likely to take profits and we need to be careful of a larger correction from this region. Till we get there, traders can still look to buy every correction.