Today, crude oil prices soared more than 1%, set for its largest one-day increase in a month. The buying triggered after Saudi Arabia said OPEC and its partners supposed demand was bending enough to warrant an output cut of 1 million barrels per day. As a result, investors are entering buying positions to price in the news.

WTI Crude Oil – Technical Analysis

Speaking of the technicals, crude oil has tested the resistance level of $61.30. Let us recall that it’s the same level which supported the oil on November 7 and worked as a double bottom level.

For now, the same level is working a resistance and, interestingly, crude oil has formed a bearish engulfing pattern right below this level which demonstrates a bearish bias of investors.

Support Resistance
59.29 60.76
58.62 61.55
57.15 63.02
Key Trading Level: 60.09

Crude oil is likely to stay bearish below $61.30 until $60 and $59.75. Whereas, the bullish breakout of $61.35 lead the oil prices towards $62.50.

Good luck!