Chart of the day

Oil is breaking above the strong resistance of 83.47. We can see a pullback here before extending higher to 90.60.

This is still the first wave of upside after the Oill bottomed recently and a fifth wave of the first upside reversal wave. A break below 81 will confirm that the upside five waves are possibly finished and open a short trade possibility, or we could see a deeper fourth wave pullback.

Long trade, You can open here with the stops below 82.30 or you can wait for a minor pullback. You can only open short trade entries in the case of a confirmed break below 81. We favor the long trade entries as we expect an upside extension from this vital support at the rising wedge. You can trade this price action using an options strategy as well.