WTI rose over 3% on renewed trade optimism
WTI oil bounced on Monday, inflated by fresh optimism after China announced willingness to restart negotiation.
Monday’s rally of 3.3% so far, retraced 50% of three-day fall from $57.11 to $52.95, when oil price was depressed by strong warning signals about escalation of trade war and subsequent negative impact on global oil demand.
Fresh bullish momentum on daily chart supports recovery, which cracked resistance zone between $55.09 and $55.52 (20/10/30DMA’s and Fibo 61.8% of $57.11/$52.95), close above which is needed to confirm reversal on formation of daily bullish engulfing pattern.
Traders wait for more evidence about continuation of trade talks, as some conflicting news circulated during the day, keeping the oil market volatile.
Res: 55.09; 55.34; 55.52; 56.14
Sup: 54.40; 53.76; 53.40; 52.95