Earlier this week, the price of WTI crude oil rose sharply, approaching a strong resistance level of 63.50 (Fibonacci 61.8% of the upward correction to the fall from the highs of the last few years near 76.80 to the support level near 42.15, as well as the upper border of the upward channel on the daily chart). The sharp rise in oil prices was fueled by terrorist attacks on oil refineries in Saudi Arabia over the weekend.
However, the price failed to break through the resistance level of 63.50 and subsequently fell, but remains above the key support level of 57.80 (EMA200 on the daily chart).
At the beginning of the European session, WTI crude oil is also trading above the short-term support level of 58.27 (ЕМА200 on the 1-hour chart), developing an upward trend.
Positive momentum prevails. A breakdown of the resistance level of 59.50 (Fibonacci level 50%) will strengthen the bullish trend of WTI and direct the price to the resistance level of 60.90 (July highs) and further towards the upper border of the ascending channel on the daily chart and 63.50, 64.40 marks.
In an alternative scenario, the first signal to resume sales will be a breakdown of the support level of 58.27.
Further decline and return to the zone below the key support level of 57.80 will mean a return to the global bearish trend.
In this case, the long-term reduction target will be located at the support level of 42.15 (Fibonacci level 0% and December 2018 lows). The most negative scenario is a decline to marks near multi-year lows and a price of $ 27.50 per barrel.
So far, and above the support level of 57.80, long positions are preferred.
Support Levels: 58.27, 57.80, 57.30, 56.80, 55.40, 55.00, 53.00, 50.30, 49.00, 42.15
Resistance Levels: 59.50, 60.90, 63.50, 64.40, 66.50
Sell Stop 57.70. Stop-Loss 58.40. Take-Profit 57.30, 56.80, 55.40, 55.00, 53.00, 50.30
Buy Stop 59.10. Stop-Loss 58.10. Take-Profit 59.50, 60.90, 63.50, 64.40, 66.50
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