The recent rise in the price of WTI crude oil, as indicated by the chart, can be attributed to several key factors. Firstly, the upcoming OPEC+ meeting scheduled for 2 June has created a sense of optimism among investors. Additionally, expectations of high fuel demand due to the start of the summer driving season and holiday season in the US have also contributed to the bullish sentiment.
An analysis conducted on 10 May revealed an ascending channel in blue, predicting continued price growth within this channel. Despite a brief drop to a low of 76.35 on 15 May, the price quickly recovered, signaling a failed attempt by bears to break the previous low. A similar pattern occurred on 24 May, further reinforcing the bullish outlook. The strong performance of WTI crude oil prices on Monday confirms this trend.
Looking at the XTI/USD chart, it is important to note the formation of a descending channel in April-May (shown in red). This decline, starting from 5 April, could be viewed as a correction within the larger ascending blue channel. The price’s quick return to the blue channel, despite briefly dipping below its lower boundary, indicates a potential end to the corrective movement. Moreover, with the price nearing the upper boundary of the descending channel, conditions are ripe for a resurgence in the upward trend.
The inability of bears to maintain the WTI oil price at new lows presents an opportunity for bulls to drive the market upwards. The upcoming OPEC+ meeting could further fuel this positive momentum. Traders looking to capitalize on these developments can consider trading commodity CFDs with tight spreads. Opening a trading account with FXOpen or learning more about trading commodity CFDs with the company could provide valuable insights and opportunities in the current market environment.
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