Oil price recovered of their Monday morning losses on Trade deal optimism despite Trump’s threat.
The Brent crude oil ended the day just at 71.00$, managed to close above 50 and 200 MAs. Before the comeback, the price drifted more than 2.00% in the Asian session. Behind the curtains, trade negotiations between US-China will resume on Wednesday. This news sparked a remarkable recovery across the asset classes.
Turning to the technical picture, before the retraced to 68.60 the price action developed a bearish H&S pattern on the H4 chart, aiming at 68.50$, the same we tweeted yesterday.
The daily indicators are remaining bearish. Against this backdrop, any rallies should be sold out. Resistances are at 71.80$/72.0$, 72.70$ and 73.20$. Note that only a break of 72.70$ would lessen the risks of a dip back to the important support 68.50$.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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