WTI recently been recovering amid trade positive headlines from the US and China while depleting US inventory levels adds strength to the strength. Prices are currently hovering around the $58 amid renewed risk appetite, in part because on Sunday the US announced that it will continue its policy of sanctioning any party importing Iranian oil or doing business with the Revolutionary Guards. The EU, on the other hand, has attempted to preserve the deal by offering several economic inducements to avoid a complete collapse of the agreement. The efforts have borne little fruit and have in fact angered Washington.
Moving higher for the 4th day in a row, Crude oil finished Monday at 58.05 gaining $1.32 and breaking the 200-Day moving average for the first time since July 31st, 2019. The bulls were in full control yesterday, moving the market higher throughout the whole session. Although the contract is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish. Some profit taking might cause prices to drop back to the support area at 56.50 (S1) today.
Support: 56.50/ 55.00
Resistance: 58.29/ 58.88