This is just a quick update for any of you that trade Brent Oil. Yesterday’s close at $50.89 could be the final catalyst that sees this commodity push higher.
In my last post on Brent Oil (Instagram), I anticipated the break above $50.00 after we saw an ‘evening star’ formation rejection the 61.8% Fib level, M.A Crossover and a convincing break of the daily trend-line.
Since then price rejected the monthly level and retested our daily trend-line as support before shooting north. This was probably a manipulated move to bait sellers into the market, with stops above the high.
Not only has the $50.00 level saw major rejections over the past few years, its also a major psychological level. There should be little or no ‘Position/Swing’ sellers in the market right now, as there would have been a large amount of retail stop loss orders placed above the last daily high of $49.87 – which has now been surpassed.
An intra-day retest of the $50.00 before going higher would be an ideal opportunity for an entry.
As mentioned earlier in the week, today is a big day for the US Dollar.
I’d advise not to enter and USD base/quote pairs until after the daily close tonight at 10:00GMT.
Have a great day!