After starting the day in a bearish position, crude oil prices bounced off strongly off session lows as risk-on sentiment hit the market during the New York session.
A weaker dollar and optimism over the passage of the $1.9trillion stimulus helped send the crude oil price on the Brent benchmark to its highest level in 13 months, touching off the $61 mark in the process.
Today’s upsurge extends gains in crude oil price for the 7th straight session and opens the door towards a potential attempt at $65 a barrel.
Technical Levels to Watch
Crude oil has bounced off intraday lows and is now coasting to new 13-month highs above $61. Monday’s 3% closing penetration opens the door towards a possible new target at 62.21, with the November 2019 high at 64.26 lining up as a potential target to the north.
On the flip side, we can expect to see a retest of the 60.07 support if there is a lack of follow-through buying to take the price to 62.21. If this retest leads to a breakdown of that area, 57.47 becomes the downside target of choice, followed by new targets to the south at 56.47 and 53.99.
Brent Crude; Daily Chart