WTI rose more than 7% on Monday as risk sentiment improved overall.
The price is now just shy of the psychological figure of $ 40 a barrel.
WTI 4-hour chart
Oil prices rose on Monday as a combination of a weaker dollar and positive risk sentiment lifted the mood of oil traders and investors. The news that US President Donald Trump is recovering from COVID-19 has also stimulated general sentiment, which in turn has helped both Brent and WTI. Away from politics, there have also been some interesting developments on the business side. BP announced that it will cut 10,000 jobs, which could reduce the giant’s production levels.

Taking a closer look at the price action now. the price has moved towards a critical technical level. $ 40 a barrel has been important on many occasions, as some OPEC officials have stated that this is a level they could accept. On the chart, the area has acted as a magnet for price as it has been at the level many times.

If the level does not break, the red line on the chart is the next support area at $ 39.24 per ounce. Beyond that, there is another level just above $ 38 a barrel marked purple.

The indicators are beginning to look more optimistic. The Relative Strength Index is above 50 again and the MACD histogram is green. The only negative note is the fact that the signal lines are below zero, but this could change in the coming sessions. Over the next few days, the market will get the latest inventory data and this could inspire another price hike.

• WTI rose more than 7% on Monday as risk sentiment improved overall.
• The price is now just shy of the psychological figure of $ 40 a barrel.

WTI 4-hour chart

Oil prices rose on Monday as a combination of a weaker dollar and positive risk sentiment lifted the mood of oil traders and investors. The news that US President Donald Trump is recovering from COVID-19 has also stimulated general sentiment, which in turn has helped both Brent and WTI. Away from politics, there have also been some interesting developments on the business side. BP announced that it will cut 10,000 jobs, which could reduce the giant’s production levels.

Taking a closer look at the price action now. the price has moved towards a critical technical level. $ 40 a barrel has been important on many occasions, as some OPEC officials have stated that this is a level they could accept. On the chart, the area has acted as a magnet for price as it has been at the level many times.

If the level does not break, the red line on the chart is the next support area at $ 39.24 per ounce. Beyond that, there is another level just above $ 38 a barrel marked purple.

The indicators are beginning to look more optimistic. The Relative Strength Index is above 50 again and the MACD histogram is green. The only negative note is the fact that the signal lines are below zero, but this could change in the coming sessions. Over the next few days, the market will get the latest inventory data and this could inspire another price hike.