Oil Technical Analysis: US needs less than expected

Oil prices have difficulties to break above $80.This happens despite the improvement in sentiment and the fact that Russia is reducing its Oil supply, instead of limiting exports of certain oil derivatives. However, expectations for markets have always been that the US would need far more supply to restock its Strategic Oil Reserves, which now turns out not to be the case and creates a bit of headwinds in the current bullish stance of traders. 

Oil bulls still clearly see more upside potential. The break above $80 though does not seem to be taking place that quickly, and $85 is offering quite quickly as the next cap. Further up, $86.90 quickly follows suit before targeting $89.64 and $90.00 as top levels. 

On the downside, the 200-day Simple Moving average (SMA) near $77.89 is the first point of contact to provide some support. Quite close behind are the 100-day and the 55-day SMAs near $75.90 and $75.17, respectively. Add the pivotal level near $75.27, and it looks like the downside is very limited and well-equipped to resist the selling pressure