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Oil prices are breaking higher, now testing highs from November 6th. Notice that the price already broke out of the upper channel resistance line which is called a base channel break.

Oil Price Elliott Wave Analysis November 2012

Those who are with us for some time now will know that this break usually occurs in a wave three rally within impulsive recovery. So if  that’s  the case then this market has reached a bottom and is headed much higher in the near future. Ideally, the market is now in wave three of three, headed to 90 area.

On this daily chart we can see that current price is already above the falling trend-line. A close above it will confirm a change in trend.

Oil Price Elliott Wave Analysis November 2012 Daily

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