Current price: 59
Key point: 58
Our preferred strategy: Buy positions above 58 with a first target of 60 and then a second target of 62.
Alternative scenario: Stop loss and trend reversal upon breaking the 56 level, targeting the 50 level.
Technical commentary
Oil rose from the pivotal support level of 54.00 before breaking through the downtrend line from last August's peak, also breaking through the resistance level of 58.00 and the 200-period moving average on the four-hour timeframe.
The price is expected to continue rising to levels of 60.00 and then to levels of 62.00.
