Brent Crude looks to be heading higher from here

Brent Crude looks to have started a second leg up off the January bottom of 45.22, indicating Brent has a good chance of heading higher from here. A decisive drop below the most recent swing low at 52.61 changes the bullish scenario shown in the below daily chart.

Weekly Chart

  • Most recent 45.22 January low completed a 61% decline from the 115.68 June 2014 peak (over seven months), and a 64.8% drop from the 2012 peak of 128.37.
  • Just prior to the low Brent completed a 88.6% Fibonacci retracement – at 47.07, of the three-year 250.6% rally that peaked at 128.37 in February 2012.
  • RSI on a weekly basis was extremely oversold at the January bottom – the most in at least 10 years

Bullish signs:

  • January low was followed by 39.3% rally
  • Subsequent retracement hit a low of 52.61, almost reaching the 61.8% retracement at 52, and bouncing
  • Next target for Brent is 70.36, the 100% completion of an AB:CD move off the January bottom
  • Higher price levels to watch are:
    • 13 : 38.2% retracement of prior seven-month decline
    • 15 : CD leg = 127.2% Fib extension of AB leg
    • 45 : 50% retracement
    • 33 : CD leg = 161.8% Fib extension of AB leg
  • Crude Oil Daily Chart

Won't your trader friends like this?
Bruce Powers, CMT
About the Author
Bruce Powers, CMT, has over 20 years experience in the financial markets. Previously, he was President at WideVision, a Dubai based FinTech and IT services company, which published MarketsToday.net/en/, and where he also was Chief Technical Analyst. For the past eight years Bruce has written a weekly column on the UAE stock markets titled \'On the Line\' for the Gulf News newspaper, and has appeared numerous times as a guest on TV business shows. Bruce is a Chartered Market Technician (CMT) and until recently served as Co-Chair of the CMT Association Dubai chapter, which he Co-founded.

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