The price of WTI oil jumped more than 5% today and hit its highest level since early March, buoyed by strong optimism over the coronavirus vaccine and the start of the White House transition of power.
A new sense of risk reinforces hopes for a stronger recovery in demand that has stalled on a new wave of viruses and a significant contraction in the global economy, offsetting the negative impact of the surge in new cases and the high mortality.
The bulls have accelerated through major hurdles to $ 43.05 / 75 (61.8% Fibo from $ 65.63 / $ 6.52 decline / peak post-pandemic recovery) and are probing above the level of $ 45, eyeing Fibo projections at $ 46.14 (123.6%) and $ 47.62 (138.2% rally projection from $ 33.61, Nov. 2 low), with a psychological barrier of $ 50 that should focus.
Bullish technologies on the daily and weekly charts are supporting the action, but overbought conditions warn of corrective actions that should provide better opportunities to re-enter the bull market.
A possible close above the $ 43.05 pivot after several failures is needed to confirm a strong bullish position.
Traders are also eyeing the release of US crude stocks, which could also stimulate the bulls if crude stocks fall.
Res: 46.14; 47.00; 47.62; 48.53
Sup: 44.50; 44.00; 43.75; 43.05