28-month high for WTI and break key level, how to position yourself in the new trend

Oil has reached levels seen more than two years ago as anti-corruption laws that came into force in Saudi Arabia shook the world's largest exporter of black gold. All this happens just a few weeks before OPEC new meeting, where big manufacturers will decide whether to extend the shortened oil-extraction program. Futures rose 1.2% after Saudi Arabia's arrests reached Saudi Aramco's high-ranking power and management.

At the November 30 meeting, Saudi Arabia, Iraq, Russia and other producers are expected to offer the prolongation of the abolished extraction after the end of the current program at the end of March.

Technically, the price managed to break through the resistance zone formed by a year ago, but current levels remain too risky to push the trigger. The good news right now is that the rising impulse is very strong and strongly confirms the breakthrough. The horizontal resistance zone also coincided with 38.2% correction of long-term traffic. The next obstacle to WTI price is $62 per barrel, where we have a horizontal resistance + 50% Fibonacci correction - a key level. Current levels are risky for entry but give us a very good prospect of profit because of the lack of a technical barrier to the price.

How to position yourself in the new trend?
Entering the current levels will be extremely risky and it's better to wait for a correction near the break-through zone - $55. At the moment, Dem (14) is in the over purchase area, and we can expect a short-term price adjustment or temporary consolidation that we can use for positioning with long positions. Reaching the price to $55.50 and creating an appropriate Price Action combined with a positive foundation will be enough for long entry criteria.

SL: 54.30

Alternative scenario: If the price goes back below the horizontal support and stays there in several successive bars, then the positive scenario will break and more likely to see a drop in the price of oil.

Jr Trader Petar Milanov

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