Oil is testing the long-term falling trend line resistance
Oil is testing the long-term falling trend line resistance 56.20 for a complete reversal higher. A confirmed break above this resistance is required for an upside continuation higher to 60 near 88.6% Fibonacci retracement of the long-term 2019-2020 swing low. A rejection here and a break below 53.20 could lead to a deeper pullback. The overall medium-term is uptrend but we need this break above 56.20 confirmed for a high probability upside extension. As long as the Oil is above 53 there is a high probability that it will have an upside extension targeting 65-70.
Note – We are inclined to long trade entries with the stop loss below 53.
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