Chart of the day

Oil is reaching the newly formed uptrend channel support of 79 after the rejection from the strong resistance of 85.50. A bounce higher from here is required for another tet of that upside resistance.

This is still viewed as completing the medium-term fourth wave pullback of the five waves upside if we get a bounce from here. A break below 79 is now required for a downside reversal and an invalidation of the possible upside reversal which will also mark the medium-term five waves upside over.

Long trade, you can open here with a stop loss just below 79 if you are more prone to risk. You can only open short trade entries in the case of a confirmed break below 79 if you got stopped out. We favor the long trade entries as we expect an upside extension from this strong support near the uptrend channel support line and horizontal support.