Crude oil broke above the daily diamond bottom that signaled a pattern reversal, regaining the lower ceiling of near-term range at 87.20 and extending gains towards the 88.00 zone during European trading Monday. In examining the overextended hourly conditions, we see potential for consolidative/corrective action, with good support at 87.00, while positive 4h studies ultimately keep the upside favored.
A push towards 89.20 (06 November spike and daily high) is required to signal a break above near-term range, confirming the base at 84.05 and opening the way for broader recovery. As such, initial barriers lie at 89.87 (Fib 61.8% of 93.47/84.05) and the psychological barrier at 90.00.” Drvenica adds. At the time of writing, WTI crude has jumped to USD $88.03 Monday, surging by +3.02% on the day.