WTI bulls burst back into life to six-week highs

• WTI bulls in charge from a  critical support area.
• Fundamentally, the US dollar is week and commodities are bid on demand expectations.  

Despite the prior rallies this week which has seen the price take on bearish commitments at prior resistance, the bulls have battled on from a shallow 23.6% Fibonacci retracement.

Markets have shrugged off the risk of  higher COVID-19 cases in Brazil and India and WTI has added a further 2% on Thursday scoring a six-week high of $65.44.

WTI had corrected from yesterday’s highs  to a confluence in  supporting factors from both a  technical and fundamental perspective and has moved higher  from down at the  $63.67 lows.  

The greenback has helped to fuel a bid in the commodity complex of late and hovered near nine-week lows on Thursday on the back of bold spending plans from President Joe Biden.

The Federal Reserve’s event was also relatively bullish for markets and coupled with strong US  economic data, a fragile greenback as well as the prospects of a recovery in demand, the bulls have taken up the lead for a third straight day.  

Additionally,  OPEC+ and decided to stick  to its plans for a gradual easing of oil production curbs from May to July and will  bring back about 2 million barrels per day (bpd) of production over the next three months.

WTI technical  analysis

4-hour chart

The price rallied from a 23.6% Fibonacci and 8 EMA confluence o the 4-hour chart where price met structure.  

Daily chart

From a daily perspective, however, a restest of the lows could be on the cards in a 38.2% Fib retracement of the daily bullish impulse’s range.