OIL makes an important breakout

Breaking above $40 is very important and marks the move above that important supply zone which immediately retested the old resistance turned support at 40 after hitting $42.50. Looking for immediate targets at $44. A possible false breakout is still very possible so be aware that this may reverse quickly with any bad news. That being said the bias is strongly to the upside

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Short term grqaph showing the breakout frame and 2 possible scenarios. The more likely one in green showing continued upside or the red arrown showing the fake breakout scenario where the price dips back under 40$ and we see a possible mid term reversal.

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One of the key scenarios here still being the false breakout. With indexes correcting its looking more and more likely that oil will follow suit. Looking for potential breakdown at the new key support at 40$