Oil prices are set to head higher before starting to ease once OPEC opens up the Oil tap again in full. The uptick will especially be felt in the US, where demand is expected to pick up as during summer a lot of citizens will be flying or driving for the holidays. Meanwhile, the hurricane season has started earlier than usual with already the first tropical depression having had impact on the Texas region. 

On the upside, the red descending trend line near $81.00 has been broken and now needs to prove its resilience as support with both a daily and weekly close above it, not allowing any more false breaks. More room to move higher towards $87.12, the year-to-date high (April 5). Previously, a relatively small pivotal level would act as resistance near $84.00. 

On the downside, the big belt of Simple Moving Averages (SMA) should work now as support and no longer allow to see moves below it. That means the 55-day SMA at $79.63, the 100-day SMA at $79.64, and the 200-day SMA at $78.90 should avoid any dips below $79.00. Should those levels not hold, another drop back to $75 could occur.