Oil Price (Brent) in Mark Up Phase (Short Term View)
Price consolidated in a re-accumulation zone within US$50-US$53 since early Aug. Earlier yesterday, we finally saw the price did a breakout (Sign of Strength) above US$53 level, and closed above US$53.00 on the 4-hourly chart. This gave us conviction that oil is trading 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 and of 161.80%. Similarly, the 2nd objective is also based on confluence of previous resistance and of 261.80%.
Momentum indicator, MACD, also continue to displayed upward momentum with the MACD trading above zero line.
In addition, oil would be trading towards a seasonality strong period bought by the colder weather towards year-end.