Bottom line: WTI Crude long term bullish structure remains intact until prices stay above $0.01, the historic April 2020 lows. Also note that initial resistance has been taken out at $30.00 levels and the commodity may soon produce a corrective drop towards $20.00 mark at least, before resuming higher again.

Fundamental Outlook:

WTI Crude prices continued its rising streak and closed above $34.00 mark yesterday. On the other side Brent Crude prices also rallied and closed around $36.00. The production cut announced last month by the OPEC+ members and rising demand over the re-opening of economies remain major factors for the rise in Oil prices.

DAX including most other markets rallied yesterday as if the escalating tensions between US-China has already been priced in last week. DAX futures managed to rally close to +2.5%, closing around 11400 mark. We expect risk-sentiment to continue its trend over the week as SPX500 and Dow Jones futures also hit 3000 and 25000 levels. The opening of economies post COVID-19 lock down, hopes of potential drug/vaccine development are some factors driving equities higher.

Gold prices continue to consolidate after hitting $1765 levels over the last week. The FOMC is expected to continue its Dovish Tone in the upcoming monetary policy meeting on June 10, and it remains to be seen how Gold prices react to the low interest rate regime by the Fed.

Technical Analysis:

WTI Crude remains bullish over the long term, until prices stay above $0.01 lows. Bulls have since managed to print series of higher highs and higher lows and also taken out initial resistance at $30.00 levels. Ideally, we can expect a corrective drop to resume lower towards $20.00 and $13.00 levels, before rallying further.

Also note that fibonacci 0.382 retracement of the entire rally between $0.01 and $34.00 is seen around $20.00 mark. A bullish bounce remains high probability and it remains to be seen if the corrective drop terminates close to $20.00 levels.

Most traders might have taken profits on aggressive long positions initiated at lower levels. They might remain flat for a while and allow prices to correct lower before initiating long positions again.

Prepared by

Harsh Japee, Technical Analyst.

WTI Crude

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。