Oil price rallies through $60 on improved sentiment
WTI oil probes above psychological $60 barrier for the first time in over five weeks on Monday, boosted by ceasefire between US and China and willingness to continue trade talks and signals that OPEC+ group is likely to extend supply cut deal until at least the end of 2019.
Concerns about lower global demand on escalation of trade war started to fade, improving the sentiment and sending oil price to new multi-week highs.
Also, positive tones from OPEC meeting (today / Tuesday), as leaders of Russia and Saudi Arabia already agreed the main principles of extension of production cut that aims to further stabilize global oil market.
Rally through $60 pressures pivotal barrier at $60.47 (Fibo 61.8% of $66.58/$50.59), looking for fresh bullish signal on firm break.
Daily MA’s turned to full bullish setup, as the price maintains strong bullish momentum and underpin the action.
A cluster of broken daily MA’s between $59.33 and $58.55 now offers strong supports which are expected to keep the downside protected and keep bulls intact.
Res: 60.27; 60.47; 60.80; 61.03
Sup: 60.00; 59.71; 59.33; 59.08