WTI bulls set targets to double top highs and score through $58 handle

• WTI is currently trading at $56.80bbls, ranging between $55.96 and $56.97bbls.
• Bulls are back in play following positive reports for the oil market.

In the energy complex, Saudi Arabia's comments this weekend reaffirmed intention to keep deep cuts into the April meeting, and by doing so, they will be increasing the incentive for other OPEC countries to increase their compliance with the cuts. In an attempt to alleviate a glut of supply, Saudi Arabia plans to cut its oil exports to below 7 million barrels a day, while keeping its output “well below” 10 million barrels a day. Elsewhere, news that Venezuela’s nationwide power outage has been disrupting oil exports has also provided support for oil prices.

"In this context, we still expect energy markets to remain supported ahead of the OPEC meeting, and see little activity from CTAs for the moment with key trigger ranges largely out of range," 

analysts at TD Securities explained. 

WTI levels 

The price has proven its fragility on a number of occasions since late Feb, the start of March and more recently, the 8th March when the price dropped to less than half a buck away from the 23.6% Fibo of the late Dec rally to recent swing highs located at 54.18, sending the support line a buck lower. However, the price is back to testing the horizontal resistance line on the 57 handle. While above 56.20, bulls can look to a target of the recent tops of 57.17 (78.6% Fibo) ahead of the 57.85/93 double-tops.