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  • Brent hits over a two-month high price of $44 per barrel.  
  • The daily chart shows a bullish channel breakout.  

Oil prices reached  two-month highs a few minutes before the press time, extending the weekly gain on optimism generated by the US drugmaker Pfizer’s disclosure of positive results of its coronavirus vaccine.  

Brent crude rose to $44.16, the  highest level since Sept. 4.  

The move comes a day after the black gold advanced 4.76%, confirming an upside break of the channel pattern represented by trendlines Sept. 18 and Oct. 9 highs and Oct. 2 and Nov. 2 low and opening the doors for a re-test of the Aug. 31 high of $46.50.  

The breakout is backed by an above-50 or bullish reading on the 14-day relative strength index. Further, the MACD histogram is printing higher bars above the zero line, indicating a strengthening of the upward momentum.  

The bullish bias would be invalidated if oil ends Wednesday below $41.72 (Tuesday’s low).  

Daily chart

Trend: Bullish

Technical levels