Current price: 85
Key point: 80
Our preferred strategy: Buy positions above 80 with a first target of 95 and then a second target of 112.
Alternative scenario: Stop loss and change direction by breaking the 77 level, targeting the 70 level.
Technical commentary
Oil prices rose sharply at the end of last month, from levels of $70 to $112 at the start of this week's trading.
It then fell sharply yesterday as well, reaching the pivotal support levels of 77-80, with an upward trend line from last month's low and above the 200-period moving average on the four-hour timeframe.
If tensions in the Middle East persist, oil will continue to rise, with expectations of reaching levels of 95 and then 112 again.
