WTI oil rose above $42 per barrel for the first time in 4 ½ months on Tuesday, attempting to eventually emerge from congestion that lasts since early June.
Oil price was lifted by EU stimulus deal and positive news about coronavirus vaccine trials that sparked strong risk mode in the markets.
Today’s rally broke above former high and recent range top ($41.61) and is on track to finally fill April’s gap ($41.51/$$34.79) and generate strong bullish signal for extension of recovery from April’s record lows.
Key barriers at $43.05 (Fibo 61.8% of $65.63/$6.52) and $43.55 (200DMA) come in focus and break of these levels would further boost recovery.
Traders await today’s API crude stocks report for fresh signals.
Res: 42.48; 43.05; 43.55; 44.00
Sup: 41.61; 41.05; 40.63; 40.00
