Oil is breaking above the long-term downtrend channel
On the Monthly Oil chart, we can see that the instrument is breaking above the long-term downtrend Schiff Andrew’s Pitchfork channel 63.870 resistance and is going for a test of the previously broken long-term uptrend channel 75-80 zone. A break above 63.875 has opened a complete upside reversal. For the upside extension to be invalidated we need to see a confirmed break below 63.90.
On a Daily chart, we saw the Pitchfork channel uptrend support line bounce off 59.30. We could see an extension to a median line of 75 as long as the price action is above 63.90. Look for the long trade entries with the stop loss below 63.80 and target the median line 75.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts. To learn more about Andrews’s Pitchfork tool trading strategy register for education.
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