Oil's chart is sizzling, even if its fundamentals are not.
West Texas Intermediate crude futures for July were trading above $51 per barrel for the first time since July 2015. Crude was higher on the weaker dollar, continued supply disruptions and as U.S. government data showed a drawdown in the nation's inventories.
Some of the factors driving the price higher may be fleeting, and oil is widely expected to come off current levels. But strategists say the charts are telling another story.
"This chart defies my own skepticism," said John Kilduff of Again Capital, who has been a crude market bear. He said the chart shows an "inverse head and shoulders" pattern — and a straight line up to where U.S.-traded WTI crude could reach the near-$62 level of last summer.