WTI has been in consolidation for most of the last month, but a rally today has seen it break above here and more gains could follow.
WTI has broken above 17 September highs and is currently showing no sign of exhaustion. It is up more than 4.3% on the day and closing in on a key resistance level around $48.80-49.20, a break of which would be a very bullish signal.
This area marks the highs of 29 July and 31 August, which in itself makes it a significant level. The 89-day simple moving average also crosses at this level which could provide further resistance.
A failure to break through this level would leave WTI stuck in a trading range, with the lower bound being around $42.70-43.10 and the upper being $48.80-49.20.
A break above, however, would suggest the market bias has become more bullish, with the next notable level coming around $50.25-51.00. While this could offer resistance, it may prove temporary coming after such a significant break. Above here $53.50-54.00 could be key.