WTI crude hits a fresh multi-week high amid rising optimism over U.S.–China trade negotiations

Oil prices continue to rise, supported by growing optimism over a potential U.S.–China trade agreement that could ease geopolitical tensions, support global economic growth, and strengthen oil demand.

WTI crude climbed to its highest level in over two months on Tuesday, marking a fourth consecutive day of gains and extending the current bullish leg.

The latest advance broke through a key Fibonacci resistance at $65.58 (61.8% retracement of the $72.27–$54.77 decline), following bullish signals from a break above the daily Ichimoku cloud and the previous recovery high from April 23 ($64.85).

Momentum remains firmly with the bulls, with the next target seen at $66.20, aligning with the 100-day moving average. However, a strongly overbought stochastic—while not yet signaling a reversal—raises the first signs of caution, suggesting the rally may be nearing a pause.

Given the current backdrop, consolidation or shallow pullbacks appear likely, especially as upbeat rhetoric surrounding the trade talks between the world’s two largest economies and top oil consumers continues to fuel market optimism.

Any deeper pullbacks should ideally remain above the daily cloud top at $64.12 to preserve the bullish structure and keep the path open for further upside.

Res: 65.76; 66.20; 66.88; 67.66
Sup: 65.13; 64.85; 64.12; 63.52