Crude oil prices test 10-week highs amid trade optimism!Crude oil prices are testing fresh 10-week highs today, with WTI futures flirting with the key resistance level at $65.50, a price not seen since the onset of trade tariff tensions in early April.
Investor sentiment remains cautiously optimistic as US-China trade talks continue in London this week, raising hopes that both parties can make progress toward a resolution on tariffs and trade restrictions. A positive outcome could further boost crude oil prices.
Seasonal factors are also playing a supportive role. The onset of the summer travel season in the northern hemisphere is expected to drive increased demand for crude, adding a bullish layer to the outlook. Energy traders are closely watching for signs that a successful trade agreement could trigger a sustained rally.
From a technical perspective, WTI bids have peaked near $65.50, although further upside appears constrained by the 200-day EMA, which is acting as a firm resistance level. However, a potential inverse head and shoulders pattern is forming, which could support a breakout and add further confidence to bullish positions.
On the downside, failure to breach the $65.50 resistance may invite selling pressure, with a potential re-test of the $60.00 support level if momentum weakens.
