Following its run up to the highest in five weeks, WTI struggles to extend the north-run as it takes the rounds just above the $59 mark during today’s early session. Immediate contributors to the black gold’s rally were the weekly announcement of the Energy Information Administration US crude inventory data and comments from the US lawmakers highlighting brighter chances of the US-China trade truce. Although Chinese media also spread optimism surrounding the trade talks between the US and China, investors awaited further clues to extend the rally further.
As expected, Crude prices headed towards the $59.99 resistance level during yesterday’s session but quickly retreated below the $59.28 resistance level amid a divergence between the price and the momentum. The price is currently trying to hold above the $59 level, however the RSI is still signaling a bullish momentum. We expect a continuation of the uptrend from this point and this time we will be focusing on the $60.55 resistance level.
Support: 58.8 / 58.21
Resistance: 59.28/ 59.99