WTI Crude Oil Surges to Five-Month Highs, Eyes Further Upside

On Tuesday, the price of WTI oil continued its upward trajectory, reaching a five-month peak and breaching the $85.00 mark for the first time since late October.

This recent surge marks the fourth consecutive day of bullish momentum, supported by optimistic forecasts for demand. Stronger-than-anticipated economic data from both China and the United States, coupled with a decrease in OPEC oil production throughout February, have bolstered confidence in the market.

Signs of further bullishness emerge on the daily chart as the price surpassed a key Fibonacci level at $84.57, representing a 61.8% retracement of the downtrend from $95.00 to $67.70. Confirmation of this breakout, coupled with support from bullish technical indicators, adds to the positive sentiment.

The immediate target for bullish investors is set at $85.87, representing the high from October 27th, with potential resistance at $88.56, corresponding to the 76.4% Fibonacci level.

In terms of potential corrections, it is expected that the former peak at $83.10 and the rising 10-day moving average at $82.24 will act as support levels, providing opportunities for buyers to enter the market.

Res: 85.87; 87.00; 88.56; 90.00

Sup: 84.57; 83.58; 83.10; 82.24