Oil showing a bullish break above the resistance trend line (dotted red) but the space is limited due to the 38.2% Fibonacci resistance level of wave 4 vs 3. The Fibonacci levels could be strong zones and cause a potential reversal back down.
Oil is currently in a wave 4 (pink) pattern unless price manages to break above the 50-61.8% Fibonacci retracement levels. A break below the support trend lines (blue) would indicate a bearish breakout and potential for a downtrend continuation within wave 5 (pink).
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