WTI comes back for another test of this important resistance zone

• Spot WTI has rejected USD 57.49 per barrel level on three occasions before this latest test.
• The market sold off last time out after OPEC+ members said no to more production cuts.

The world trade outlook is improving as it was reported this morning the US and China are looking to agree on a phased rollback of extra trade war tariffs.

Since then commodities have been on the rise with the likes of copper and oil both pushing higher.

Technical Picture 30-Minute Chart

The 30-minute chart below shows just how many times the 57.49 level has been tested.

This time out there could actually be a breakout to the upside. There had been a strong consolidation low of USD 56.35 per barrel which could act as support.

4-Hour Chart

On the higher time frames, there is a channel formation. If the level on the 30-minute chart breaks higher, then the top of the channel could come into focus.

It will take the daily or 4-hour close above the high of USD 57.80 per barrel to confirm the trend continuation. 

The RSI is still holding in a positive area above the 50 mid-line which could also keep the technical bulls happy for now.

Additional Levels