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  • WTI pushes over 7% higher on Monday as risk sentiment improves all round.
  • The price is now just under the psychological USD 40 per barrel figure.

WTI 4-hour chart

Oil prices have jumped on Monday as a combination of a weaker dollar and positive risk sentiment improved the mood of oil traders and investors. The news that US President Donald Trump is recovering from COVID-19 has also spurred general sentiment which in turn has helped both Brent and WTI. Away from politics, there have also been some interesting developments on the corporate side. BP announced that they are going to cut 10,000 jobs which could bring down production levels at the giant. 

Looking closer at the price action now. the price has moved up towards a critical technical level. USD 40 per 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 the price as it has been at the level many times.

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

The indicators are starting to look more bullish. The Relative Strength Index is above 50 again and the MACD histogram is green. The only negative note is the fact the signal lines are under 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 rise. 

WTI Analysis

Additional levels