WTI Oil is trading in the $78.50s during the US session on Friday. On the 4-hour chart used to assess the short-term trend, Oil has decisively broken out of a falling channel and reached the conservative target for the breakout at $78.17 (Fibonacci 0.618 extension of the width of the channel extrapolated higher).  
 Oil 4-Hour Chart  Since breaking out of the channel, Oil is probably now in a short-term uptrend with the odds favoring more upside in the short-term, given “the trend is your friend”. However, it has now reached its initial target so is vulnerable to a pullback. A breakout above the last lower high of the prior downtrend at $80.36 (May 29 high) would provide added bullish confirmation and extend the uptrend higher. Such a move might be expected to reach the next key target at $83.50 (April 29 high and top of chart gap). The direction of Oil is less clear on the daily chart used to assess the intermediate-term trend. 
 Oil Daily Chart The key feature on the daily chart is the cluster of resistance in the $79s from all three major Simple Moving Averages (SMA) – the 50, 100 and 200-day SMAs. This is likely to present a considerable barrier to more upside and could be an inflection point for Oil price. It would require a close on a daily basis above $80.36 (May 29 high) to confirm a successful break above resistance from the three SMAs and a continuation up to a target at $83.50. WTI Oil appears to be trading within a broad long-term range between $64.00 and $93.00 on the weekly chart. This suggests the long-term trend is probably sideways. 
 Oil Weekly Chart Last week’s red club-shaped candlestick could be a sign the move down has completed and Oil price may be reversing. Similarly-shaped candlesticks often punctuate the end of down moves in asset prices. It is possible Oil price could be about to begin a bullish sequence higher. The 200-week SMA has acted as reliable support on multiple occasions in 2023-24 and is providing support again at the current week’s lows. The reliability of the 200-week SMA further enhances the case for a bullish reversal. More By This Author:AUD/USD Price Analysis: Sideways Trend Continues Unfolding EUR/GBP Price Analysis: Reaches Downside Target For Range Breakout AUD/USD Price Analysis: Poised To Break Down After Piercing Bottom Of Range