Brent turning higher once more
Brent crude is turning in our favour, following a retracement of the rally from $53.00. With that level intact, this pullback seen last week simply provided us with a good entry price. The head and shoulders pattern completed on Friday paved the way for gains into the next key resistance level at $56.15, which has held for now.
However, with a retracement into the 50% Fibonacci seemingly over, we look likely to break higher from here, as long as we push convincingly through $55.55.
An hourly close above that level would point towards a rally into and above $56.20, with the next target at $57.53. We would need to break back below $53 to negate this bullish view.
WTI breaking higher once more
WTI similarly retraced heavily, yet the failure to break below $50.30, followed by the creation of an inverse head and shoulders has pointed towards the resurgence we have been waiting for. With price currently breaking higher from a symmetrical triangle formation, it seems likely that we will see further gains come into play.
Near-term, a break through $53.26 and in particular $53.56 would point towards a strong move higher, with $55.07 the next major resistance. A bullish outlook remains in place unless we see price break back below $50.30.