WTI gains 2.0% amid market optimism on US election results

WTI snaps two-day losing streak as risks cheer Biden’s victory.
Coronavirus woes challenge the bulls ahead of ADIPEC Conference.

Anil Panchal FXStreet

WTI seesaws around the intraday high of $38.64, currently near $38.40, up 1.95% intraday, while heading into Monday’s European session. In doing so, the oil benchmark extends late Friday’s corrective recovery while parting ways from the previous two-day declines.

Although the coronavirus (COVID-19) resurgence challenges the outlook for energy demand, commodities benefit from the US dollar’s weakness. It should be noted that Reuters’ latest tally suggests over 10 million cases in the US as well as 30 million marks from Europe that suffer from the deadly virus. The pandemic has already pushed brake on economic activities in major EU states and the UK while America is still trying not to shut the door and shows readiness to form a COVID-19 taskforce team to tackle the problem. That said, the US dollar index (DXY) drops to the fresh low since September 01 while flashing 92.20 as a quote.

With Joe Biden’s victory in US presidential elections favoring more stimulus, risks are bid and the safe-havens stay mostly offered, like the USD, following the results. Even so, Trump challenges the outcome to keep the Republicans in the power in the Senate.

Also propelling on the market risks could be upbeat figures of the US employment data, published last Friday.

However, speeches from energy ministers from Saudi Arabia, Russia, Iraq, Iran, UAE along with OPEC's Secretary-General keep the oil buyers cautious. The three-day-long virtual event is known as the Abu Dhabi International Exhibition & Conference (ADIPEC).

Technical analysis

The 200-day SMA level, currently around $37.30 offers immediate support to the black gold whereas 61.8% Fibonacci retracement of the commodity’s October-November downside, near $38.85 can guard nearby upside.

Additional important levels

Overview
Today last price	38.4
Today Daily Change	0.73
Today Daily Change %	1.94%
Today daily open	37.67

Trends
Daily SMA20	39.24
Daily SMA50	39.59
Daily SMA100	40.44
Daily SMA200	37.48

Levels
Previous Daily High	38.8
Previous Daily Low	37.29
Previous Weekly High	39.55
Previous Weekly Low	33.85
Previous Monthly High	41.93
Previous Monthly Low	35.08
Daily Fibonacci 38.2%	37.87
Daily Fibonacci 61.8%	38.23
Daily Pivot Point S1	37.04
Daily Pivot Point S2	36.41
Daily Pivot Point S3	35.53
Daily Pivot Point R1	38.55
Daily Pivot Point R2	39.43
Daily Pivot Point R3	40.06

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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