The price of oil did a breakout last week, hitting its highest level in more than two years. Two things are acting as a catalyst for rising oil prices: Oil producers cutting production, and a falling number of US rigs drilling for oil.

I noted several weeks ago that analysts were getting more bullish on oil stocks. Now we see why.

Oil broke through its two-year high of $54.50 per barrel, signaling a primary advance. Retracement that respects the new support level would confirm the up-trend:

Waiting for a retracement on the chart of oil.

Zooming out on the chart of oil, the next major resistance level is at $61: