WTI cheers broad risk-on sentiment to rise beyond $34.00

• WTI holds onto Monday’s recovery gains to refresh three-day top.
• Optimism surrounding economic restart, absence of US President Trump’s criticism on Hong Kong issue favor risks.
• Dow Futures jump over 300 points, S&P 500 Futures gain more than 1.0% to portray the risk-tone mood.
• The return of full markets will keep oil traders entertained.

WTI futures print 0.50% gains on NYMEX while taking the bids near $34.22 amid Tuesday’s Asian session. The black gold recently benefited from the market’s upbeat sentiment as major economies try to restore the pre-coronavirus (COVID-19) conditions while easing lockdown restrictions.

In addition to the fast easing of social distancing measures in Pacific nations and Europe, the gradual efforts to return to normalcy by the UK and the US, coupled with the Middle East, also brighter the traders’ mood.

Recently, California allowed churches to reopen with aggregation limits of 100 whereas Saudi Arabia lifted a ban on workplace attendance in both government and private sectors.

Further to support the market’s optimism, US President Donald Trump so far stays away from criticizing China’s Hong Kong security bill despite Chinese diplomats keep loading Global Times headlines with a direct attack on the US.

That said, the US 10-year Treasury yields remain mildly positive around 0.661% whereas US stock futures register noticeable gains by the press time. In doing so, the S&P 500 rise over 1.35% to 2,992 while Dow Futures add more than 300 points to 24, 748 by the time of writing.

Looking forward, traders await the return of the UK and US players after the long weekend for fresh impulse whereas a direct hit on China’s Hong Kong march by US President Trump could dim the risk-on sentiment.

Technical analysis

Buyers are waiting for a clear break above the monthly high of $34.74 to challenge 100-day EMA around $35.25. Alternatively, an eight-day-old ascending trend line near $32.55 can limit the quote’s fresh declines.