Oil has reversed from the low and is testing an important upside resistance of 76. A break above this resistance is required for the complete upside reversal and a general shift in the market direction from the downside to the upside.
How to trade this?
This is an excellent opportunity to go long and build a long trade position as the support for the upside is close to entry where your stops should be. A break above 76 will also mean that the recent five waves’ downside is over. You can take the long trade with the stop loss just below 72.30 to target 84 and possibly higher
A recent break above the long-term falling trend line is indicating that we are at the beginning of a major turn in direction and completion of the five waves downside as you can see it on the weekly chart below.
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