Price consolidated in a re-accumulation zone since early Aug with resistance at US$53.00. Earlier yesterday, we finally saw the price did a breakout (SOS) with oil closing above US$53.00 on the 4-hourly chart and continue trading higher above the level. This gave us conviction that oil is in a Mark Up phase with 1st objective set at US$54.50.
The 1st objective level is set based on a confluence of factors which includes previous resistance level and Fibonacci projection of 161.80%. Similarly, the 2nd objective is also based on confluence of previous resistance and Fibonacci projection of 261.80%.