WTI edges higher in the day 6.20%, trades above $65.50

• Oil is up almost 6.50%, recovers some of last week’s losses.
• China reports zero local covid cases, thus improving the market sentiment.
• US dollar weakness weighs on the WTI price.

Oil edges up in the day, trades above $65.00 and is up 5.65%, recovering some of last week’s losses. 

Risk-on sentiment on the market prevails, as investors dump safe-haven assets and move towards stocks and commodities like Gold and Silver, which are also up at 1.23% and 2.65%, respectively. China’s covid outbreak is under control, with authorities reporting zero local covid cases in the day.

Today’s dollar weakness weighs in WTI. As the greenback slides almost 0.50% in the day, eyes 93.00, and the US 10-year Treasury yield is down around 7 basis points (bps) at 1.253%.

WTI technical outlook

WTI trades at $65.59 testing a falling trendline from the highs of July 30 and August 12. If the price breaks that trendline, the target is the August 12 high at $69.50. The 100-day moving average stands at $68.00, followed by a challenge of August 12 high around $69.00. 

On the other hand, if the $65.50-60 resistance range holds, we could expect a leg lower, to re-test $62.00. It will find in the way its first support at $65.00, followed by August 19 high at $64.52, then last Friday’’s high at $64.00, and followed by August’s low around $62.00.

RSI is at 43.06 aiming towards higher readings, while the Average True Range is $2.29 steady in the session,