- Oil prices increase as OPEC and Russia signal to a possible extension of the output cuts deal
- WTI oil prices (OIL.WTI on xStation5) gather momentum as they broke through a neck line of an inverted head and shoulders pattern (SHS)
- A key resistance area at a daily time frame should not halt bulls
Over the course of the latest hours the oil market has been continuing its bullish momentum being supported by fresh news pertaining to the upcoming OPEC meeting in a month as both Russia and the Cartel itself seem to be on board when it comes to a deal extension. On top of this, the Kurdish thread settled down as we wrote more about it on Friday. Now take a closer look at a technical analysis.
OIL.WTI accelerated its trend last week after a bounce from a broken neck line of an inverted SHS pattern. The price is struggling with a resistance nearby $54 right now and once it’s able to break through it, a move toward $61 could be likely.
The price was able to move to $54 during the Monday’s session but sellers failed to take the price lower therefore a resumption of the underlying trend could take place after a possible short-term pullback. If so, the price could eye fresh highs unseen for more than 2 years.
A bullish sequence might be spotted at an hourly chart. Notice that buyers are trying to join the bull market after short-lived corrections. Based on the overbalance strategy one may assume that a possible correction to the downside could be contained to $1.8 reach. Once such a move occurs, a return of bulls could be considered.