WTI crude oil extends breakout
The high in WTI crude oil today is $50.01, now above Wednesday's $49.71 peak.
Crude stumbled yesterday after bearish US supply figures but it's taking advantage of US dollar weakness today and up 3.5%. A negative note from Goldman Sachs arguing for a washout in prices has also been disregarded.
The fresh high is the best level since July 23.
Technical analysis
I'm a bear but the upside for oil is intriguing from a technical perspective. If crude gets above $50 there's a compelling case for a return to $56.
That's the measured target of the wedge over the past month and is resistance at the January low.
It may take some work to get through the 61.8% retracement of the June-Aug highs but crude can sometimes move very quickly, especially with the market potentially wrong-footed.
