On this weekly chart, we are drawing Pitchfork channels on Oil.
On the weekly Oil chart, we can see that the instrument has bounced from the uptrend Pitchfork channel median line 63 level. This is also the 200 SMA level and this reversal from a recent pullback is a sign of a healthy uptrend direction. In the coming days and weeks, we should watch for a 73 level test. This would be a key upside extension test and a breakout level of the Pitchfork channel.
We have used the combination of the top-down trading analysis and the Andrews Pitchfork channels to get to a trading entry stop loss levels and targets. On the daily chart, the blue rectangle is a possible pullback zone for the long trade entry. You should watch for a pullback next week into the 66.50-67.50 zone, and this will trigger a long trade entry with the SL below the 65.50 level targeting 73.90 level at least
Happy trading! (click on the chart to enlarge it)
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