Today, oil spiked higher on the news of the possible OPEC and allies production cuts in 2019. Alongside with all the technicals outlined below, it would be reasonable to open a longer-term buy trade.
Daily: 1. Extreme oversold RSI reading 2. Bounce of an important support zone just under 60$ level 3. Break of the downtrend line on the RSI 4. Early buy signal on STCH + extreme oversold
4 Hour: 1. Break of the downtrend from 28th October 2. A buy signal on Slow Stochastic indicator 3. Attempt to break the 20d EMA
The trigger of this long trade should be the 4h candle close above the downtrend line +the 20day EMA. SL below the recently established low and TP1 at the 78.6% FIB (4h) & 38.2% FIB (daily).
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By the way. On the weekly chart we are testing the long-term uptrend, thus a bounce of ait (at least a medium-term one) is highly likely.