Oil is catching a bid this week. Crude prices rallied yesterday with WTI jumping around 5%. The move is being continued this morning, although the scale of gains is not as big as yesterday, at least not yet. Gains are driven by an overall improvement in market sentiment, with concerns over the condition of the banking sector in Europe and the United States slowly fading. Today's move higher may also be supported by comments from the Russian Energy Minister who said that he expects Russian oil and gas production to decline in 2023. However, this can be hardly seen as news as a drop in Russian output has been foreseen as an aftermath of the West imposing sanctions on Russia for its invasion of Ukraine.
Taking a look at WTI chart (OIL.WTI) at D1 interval, we can see that price is attempting to break above the $73.00 resistance zone that served as the lower limit of a previously broken trading range. While price is trading almost 15% above a daily low from March 20, 2023, technical setup is not bullish yet. In order for it to become more bullish, a break above the $81.20 resistance zone would be needed as this is where previous local high, the upper limit of Overbalance structure and previous price reactions can be found.
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Source: xStation5
