In this article, we want to help you to determine the target for the Oil after the strong 200 SMA monthly bullish break in progress. We will use our top-down trading analysis to find the suitable entry point and the target.
You can see on a monthly chart the break above the 200 SMA (blue line) in progress (the monthly candle is just forming). Also, we can see by spreading the Fibo that the next upside resistance aligns with the falling long-term trend line and it is 61.8%- 76.44 level.
The daily chart is revealing the strong upside resistance 66.70 level break higher. This was also an ascending triangle continuation formation. Clear daily candle break could be confirmed tomorrow, but without the confirmation, this is a high probability long trade with the good risk reward.
For a trade entry, we will use the H4 chart. The entry point should be on the market, The stop loss level is close to a broken horizontal resistance level 66.20 and the target is 73.30 followed by the long-term falling trend line level 76.44.
Happy trading! (click on the chart to enlarge it)
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