WTI technical analysis: Solidly bid near 11-month falling trendline

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  • Oil jumps to the highest level since July 15 on Saudi attacks.
  • An upside break of trendline falling from October 2018 highs would bolster the bullish case.  

WTI oil prices are currently trading at $59.70 per barrel, representing 8.5% gains on a 24-hour basis. Prices hit a high of $60.63 in early Asia, a level last seen on July 15.

The “Black Gold” gapped higher due to Saturday’s attack on Saudi Aramco, one of the largest oil-producing drone attack on the Saudi Aramco’s oil facility – one of the world’s most important oil processing plant.

Observers fear further rise in prices in the near future if Saudi officials indicate a possibility of a prolonged (more than six weeks) production outage.

As far as technicals are concerned, the probability of further price rise would increase if prices find acceptance above $59.89 – the resistance of the trendline connecting Oct. 3 and April 23 highs.

Prices, however, may drop to the former resistance-turned-support of $58.73 (Sept. 10 high) if Saudi officials downplay fears of a prolonged outage.

Daily chart

Trend: Bullish

Technical levels

 

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