Crude oil prices continue to rally as the upbeat sentiment among traders remains well supported by recent progress in the US-China trade talks along with auspicious results from the Chinese economy in past sessions, all alleviating concerns over a potential slowdown in the Asian economy. Prices are also managing to reverse the bout of selling pressure that emerged late on Wednesday in the wake of the weekly build in US crude oil supplies reported by the EIA.
Crude oil prices surged back up and this time printed again some new highs at 63.47 per barrel after gaining some momentum. However, with now the price being held at the top, we can notice a significant divergence between the momentum and the price in the overbought zone, pointing to a potential correction for the price to the downside. We will be focusing on the near support levels, especially the 62.76 support level.
Support: 62.76 / 61.31
Resistance: 63.41 / 64.07