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  • WTI has scaled key 61.8% Fibonacci retracement hurdle. 
  • The breakout could attract stronger chart-driven buying.

West Texas Intermediate (WTI) oil is currently trading at $64.29 per barrel, having hit a high of $64.41 a few minutes before press time. That was the highest level since the end of April 2019. 

The black gold’s weekly candle has convincingly breached resistance at $63.71 – the 61.8% Fibonacci retracement of the sell-off from the October 2018 high to December 2018 low. 

The 61.8% retracement is one of the golden ratios and is widely considered a major technical level. 

So, if WTI manages to hold above $63.71, stronger buying pressure may emerge, possibly leading to a test of resistance at $66.58 (April 2019 high). 

A failure to hold above $63.71 could yield a corrective pullback to $62.00, as WTI has already rallied more than 15% in the last five weeks. 

  • Read: WTI refreshes seven-month high, above $64.00, as bulls cheer US-Middle East drama

Weekly chart

Trend: Bullish

Technical levels