Current price: 58.70
Key point: 58
Our preferred strategy: Buy positions above 58 with a first target of 60 and then a second target of 61.
Alternative scenario: Stop loss and trend reversal upon breaking the 57.70 level, targeting the 57 level.
Technical commentary
Oil is moving below a descending trendline from its July peak and below the 200-period moving average on the four-hour timeframe. However, it has rebounded from the 57.00 support level and broken through the 58.00 level.
If the price breaks through the pivotal resistance level of 59.00, oil will then head towards the 60.50-61.00 levels.
