Crude oil prices extended gains as optimism around progress in US-China trade talks boosted market sentiment

WTI oil prices surged over \$2 on Monday following the successful US-China trade talks over the weekend, which eased tensions and signaled progress toward resolving the trade conflict between the world’s two largest oil consumers.

The positive developments boosted market sentiment, significantly improving the demand outlook and further supporting oil prices.

WTI resumed its strong rally from last week (up nearly 8%), reaching a two-week high and retracing over 76.4% of the \$64.70/\$55.14 decline.

Bullish targets are set at \$63.55 (April 28 high), the final barrier before \$64.70 (April 24 high), where a breakout would confirm a bullish reversal with a completed failure swing pattern on the daily chart.

However, with overbought conditions and the 14-day momentum indicator still negative, a brief consolidation may occur before another upward push, with shallow dips likely finding support around the \$61.00 zone, offering a better re-entry for buyers.

A break below the \$60 mark, which previously acted as strong resistance and has now become solid support, would weaken the bullish outlook.

Res: 62.97; 63.55; 64.70; 65.00
Sup: 61.90; 61.05; 60.71; 60.00