Oil prices surge on OPEC+ decision to continue production increase

The WTI price surged on Monday and hit the highest levels since November 2014, lifted by decision of OPEC+ group to stick to plan for gradual production increase.
The group of top oil producers, including Russia and allies, known as OPEC+, agreed on today’s meeting to stick to existing plan to increase oil output by 400,000 barrels per day from November, until at least April 2022, aiming to phase out existing 5.8 million barrels per day, introduced during the crisis, induced by coronavirus pandemic.
The cartel was pressured by big oil consumers such as United States and India, although the decision for increased production and surging oil prices is threatening post-pandemic economic recovery.
The WTI contract price jumped above $78 per barrel on Monday, marking the biggest one-day advance since Aug 23.
Strong bullish signal is developing on daily chart, as today’s rally broke above former peaks at $76.95 (July 6) and $76.88 (Oct 3 2018), with close above these levels to confirm the signal.
Bulls pressure psychological $80 barrier, break of which would open way for extension towards $89.25 (Fibo 76.4% of $114.80/$6.52, 2011/2020 descend), with risk of retesting $100 level, according to the wave principles (oil price is currently ring on the fifth wave of five-wave cycle from $6.52 (2020 low).
Daily studies remain in full bullish mode and underpin the action but overbought conditions on weekly chart warn of corrective action in the near-term that would precede fresh push higher.
Rising 10DMA (currently at $74.31) should keep the downside protected and guard lower pivots at $72.35 (ascending 20DMA) and $70.00 (psychological / 55DMA).

Res: 78.35; 80.00; 81.86; 85.24
Sup: 76.95; 75.53; 74.31; 73.12