Chart of the day

Oil is breaking above the short-term falling wedge 74 level and is now testing the most important resistance for an upside continuation. A break above this resistance calls for a reversal upside.

Only a clear confirmed break below 64.50 will invalidate the upside reversal and an extension higher in five waves. A confirmed break above the 79.50 level will mean a new swing higher in the five upside waves. Short-term a break above 79.50 will lead to a test of 86.

Short-term long trades could be opened here with a stop loss below 73 upon a break above 79.50. Short Oil trades should be opened only upon a confirmed break below 64 I am careful here as the swing range 65-76 could continue but a break above 79.50 will mark the consolidation as finished.