Current price: 60.20
Key point: 60
Our preferred strategy: Buy positions above 60 with a first target of 62.50 and then a second target of 64.00
Alternative scenario: Stop loss and change direction upon breaking the 58 level, targeting levels of 55.
Technical commentary
Oil moved in a downward direction on the four-hour timeframe until it reached the pivotal support level of 56.00, from which it rose, breaking through the resistance level of 59.00 and holding above it.
If the resistance level of 61.00 is broken, along with the 200-period moving average and the downtrend line from the August peak, the price will head towards the 62.50 level and then the 64.00 level.
