Crude Oil: Classical breakout to support harmonic structure
Oil prices have been dominated by a good Fibonacci symmetry that started in the third week of June 2012, presenting bullish harmonic structure over medium-term basis.
The provided weekly chart explains the harmonic structure, which started to push oil higher after placing the significant trough in the 42.40 regions where sellers have meet a cluster support near 200% Fibonacci projection of the XA leg.
Last week, oil has soared breaching the classical key resistance level of 54.20, but it was stopped by Fibonacci retracement of the CD leg as seen on the chart below.
A beak of 57.75 is required to activate more buying interests from traders, aiming to challenge 60.00 philological followed by 67.25.
Conversely, coming beneath 51.35-low recorded last week- will negate the bullish scenarios.