Chart of the day

Where do we stand fundamentally?

Oil demand is balanced recently and we do not have any imbalances. Price drop is influenced by the administrative measures for restricting higher prices and the lack of increased demand from China. This does not mean that the Oil prices will not increase in the coming months.

Oil is retesting again 75 in the long-term consolidation channel and is preparing for a new swing higher. We are still in the second upside wave pullback and a break above the 83.80 will lead to a continuation higher in the third wave.

An invalidation level of a fifth wave long-term extension higher and a bullish cycle is 71.40. As said this extension higher could lead to 180 target in the medium-term to long-term if we get a confirmed break above 85.

_{Try a long trade entry with a stop loss below 73 to target 85 and higher.}