Oil rally off news, to continue to $65!

Crude oil prices skyrocketed from the news that there was an attack on an Iranian militant in Iraq which increased tensions and caused oil to pop. Oil was already on a tear to the upside and market structure suggested long side, this just gave price a little jolt of energy. Tensions may continue to rise but market structure is still saying upside. The break above the top of the channel ensured the upside. The bottom of the channel and support structure held really well on the intraday with a double bottom at $60.70-$60.80.

From the break of the previous high at $62.30 and the break of the channel we have now experienced a pullback into that area for a continued move higher. The $62.30 level held as support really well after hitting the $64.00 area. The next target is $64.00 yet again which is the 150% Fib extension area so target 1 was hit. The next target is the 200% Fib extension at $64.98.

Should price break below $62.30 there is a potential for a pullback into the support at $61.00 where the impulse from the drive higher started.

This idea is for educational purposes only, this does not constitute as investment or trading advice. TRADEPRO Academy is not responsible for any market activity.