Chart of the day

Oil has bounced off the support 83 level and is now extending higher to target 105. The support zone is 83-85 for this extension higher.

Only a break below 83 will invalidate ultimately the extension higher and would change the Elliott Wave long-term count. The key upside resistance from medium-term to long-term remains 93.65.

Long trades are favored to be opened here with a stop loss below 83 and on the dips to 85. We prefer the long trade entries at this stage as we see an ongoing price action to continue higher after the strong confirmed bounce off 83. Short trade entries could come only upon a confirmed break below 83.