On Tuesday, the price of WTI reached a 2-year high at $59.6 following reports of an explosion at the biggest oil terminal in Libya.
Previously, WTI started a strong bullish rise since June this year when it bottomed at $42. Since then, it has made higher highs and higher lows in a near-perfect zigzag manner.
The upward momentum is attributed to the OPEC deal made in Vienna a few weeks ago, a projection of increased demand, and several disruptions in the Middle East.
With the new milestone WTI reached yesterday, possible short-term pullback might be seen as traders sell off. This could see the price fall to about $59.35 level which is the 20-day moving average level (at the middle of the Bollinger bands). A further drop could see it test the $59 level which is the 28.3 Fibonacci Retracement level.
As the Libyan issue continues to be solved the price may correct.