Black line -resistance (broken)
Blue line- support
Oil price is now trading above $74. Short-term trend is changing to bullish. We noted on time when price was still below $69 that an upward reversal was very possible. Price recently provided a bullish signal by breaking above the black downward sloping trend line. Oil price has also broken above the recent high of $72.70 and has started a new sequence of higher highs and higher lows. Recent low at $67 is now key support and in order for this upward move to continue, price must not fall below $67. Failure to hold above $67 on any pull back, will be a bearish sign and will push price towards the blue support line around $64.