Oil is Close to Breaking Out, But Not There Yet

The price of oil has gotten some attention lately as WTI has rallied YTD from about $92 to 106 and Brent has rallied from an April low of about $104 to $115. Still, according to our work both WTI and Brent have a little way to go before we would consider either to have completed a breakout above what appears to be pretty significant resistance. A decisive breakout above these resistance levels (the light blue line in the charts below) would significantly raise the probability of higher prices in the future, but we are not there yet.

Below we show our proprietary point & figure charts of WTI and Brent crude oil.


WTI Crude:


Brent Crude: