Whats up Akil. Nice hearing from you. Price ripped (upside) through this resistance level as news broke of OPEC reaching an agreement to reduce oil output. Price has now created a higher high and a higher low on the 4H (which is my higher timeframe). However we are also at the upper trend line of a larger wedge pattern on the 4H which could act as resistance. If price pulls back into the $46 zone (which is also the 38.2% retracement of the up swing) I will be looking for bullish price action with the expectation that this previous resistance will now act as support. My targets would be 1) Previous structure high at $47.43 then 2) 127% extension at $48.35 which is at the top of the wedge.
Thanks Jorgen for the comment. There was very strong bullish price action when price approaches the resistance zone (NO SELL SIGNALS). There was a strong clean break with a shallow retracement that did not retest the resistance zone (now support). Currently there is a large separation from the 50 SMA. Price has just recently tagged the 127.2% extension at $48.27. If I am a bull i would not chase the price higher. I would wait for a retracement back into previous structure or the 50 SMA before looking for long opportunities. As a bear you have to be cautious as price is currently making higher highs and higher lows. Aggressive bears can look for reversals at the resistance zones overhead on a lower timeframe (this would be counter trend as we have a bull channel). However only consider selling after the bears have broken lower and are able to hold their pullback. Have great day and happy trading.