Bullish breakout on the WTI oil

WTI oil has been supported during today’s session by a rise in risk aversion and optimism in the stock market. Usually, when stocks rise, oil tends to rise as well, due to the fact that the market is anticipating an economic expansion that will need fuel to stay up and running. The change in sentiment of the markets comes after the Chinese president announced that it will open its markets and it will reduce the tariffs on car imports. That has caused the price of oil to rally as shown on the daily chart of the WTI oil. On the chart we can see that when the bullish momentum accelerated, the price of WTI oil breaks above the bearish trendline and above the 64.00 level. The bullish momentum was so strong that the price continued to break above the 65.00 level and reach a high around the 65.84 level. The next resistance on the commodity could be the 66.64 zone from where the price has already bounced to the downside. In case of a bearish pullback, the first support zone could be the 64.00 level, followed by the 55 day EMA, which is currently around the 62.49 level.