Weekly price action on Oil is dominated by a huge bullish candle after OPEC deal to cut production. The only thing that could be worrying for bulls now, is the fact that it is a bullish candle in a long term downtrend. Another thing is that it is touching the uptrend line of downside Pitchfork channel and median line of upside Pitchfork channel, and as addition, horizontal unbroken resistance twice before.
During the next closing weeks of the year we will possibly see strong USD support, going into a December FED meeting, which could lead to another downside reaction of Oil before a final run to 55$ possibly early in the beginning of the 2017.
Looking at the price action recently there is greater probability of a retest of 40$ then a probability of an immediate break of 51$ following with 55$. So there is a scope for sideways price action between 40 and 60$ for the next year. A break below 40$ will open possibility for 36$ retest.
Happy trading! (click on the chart to enlarge it)
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