WTI looks for a break through the 57.00 handle with eyes on $60bbls
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- WTI back in the rising wedge, but can bulls perceiver?
- WTI at risk of downside correction of $57 handle not breached.
The US markets were closed on Monday for President's day but that didn't stop the optimism circulating around trading floors in Asia and European markets as China and the US seek to conclude negotiations this week ahead of the cut off line imposed by Trump for 1st March where trade tariffs will be raised if a solution, or at least, an extension is not agreed in Washington this week.
Indeed, the price of oil will very much depend on the outcome of this trade dispute and bulls are betting on a positive outcome that should encourage demand for the black gold. The price of oil had been consolidating for the most part and oscillated between $55.73 and $56.32bbls.
WTI levels
From a technical standpoint, the price is back into the rising wedge, by the skin of its teeth mind you. to really convince, there needs to be a test of the upside of the wedge’s resistance and on the way to R2 located at 57.22. However, if prices drop back below the rising wedge’s support line, a break of 51.50 and the 27th Jan fractal low will open a run to 50.63 as the last defence for 50 the figure, and 7th Jan swing high at 49.96. On the wide, the bottom of the prior trend is down at 42.54 (top of reverse H&S head).
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