It’s been a good day for crude oil yesterday as the market benefited from a couple of positive headlines. That triggered a quick rally as markets look forward to de-escalation on trade front to price out growth fears. This just shows how laser focused the market is on anything regarding trade negotiations.
On the 1 hour chart, we can see that the price is now back at testing the key resistance zone around the 62.00-64.00 area. The sellers will likely continue to step in here with a defined risk above the resistance to keep targeting new lows, while the buyers will look for a break higher to invalidate the bearish setup and position for a rally into the 72.00 level next.
For now, we are just ranging between the 59.00 support and the 63.00 resistance. A breakout on either side should see the momentum increasing
