Oil is testing the long-term downside channel breakout resistance
On the Monthly Oil chart, we can see that the instrument is testing long-term uptrend Andrew’s Pitchfork channel 57 resistance. Rejection from this resistance could lead to a deeper correction lower if we will not have a breakout this month. For this downtrend from 2011 to be reversed we need to see a clear confirmed breakout above this level.
On a Daily chart, we can see an uptrend Pitchfork channel formed and a bounce off the channel support 52. A break above indicated key long-term level is required for a good risk to reward long-trade entry possibility. A break below 53.70 is now required for a deeper pullback. You can wait for a confirmed breakout to enter the long trade which would have a 64 profit target.
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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