Chart of the day

Oil is testing the strong resistance of 83.40. A confirmed break above 83.40 is required for a reversal higher and an extension to 95.

This is viewed as the third wave higher after the second wave pullback and a bounce from 68. A break below 79 is required for a downside reversal and an invalidation of the immediate continuation in the third wave higher.

Long trade, you can open upon a confirmed break above 83.40. Short trade entries you can open only in the case of a break below 79. We are favoring the long trade entries as we expect an upside extension after a clear break above 83.40.