Previously, when Brent Oil was trading at $48.87, I stated that upside momentum was imminent. My initial projections were as follows:
- Target 1 = $52.50
- Target 2 = $55.00
After price made a huge bullish close above the strong monthly resistance level of $50.00 – we soon pushed higher to fulfill my primary target. I made a blog post as this all happened, you can read it by Clicking Here. In this post, I explain that it’s likely that a retracement will occur before pushing higher (possibly into $55.00).
For almost 2 weeks, we have seen price lose momentum and consolidate underneath my weekly resistance level. That was until yesterday when this commodity melted and decline almost $1.40.
We now have two scenarios going forward.
As if the $50.00 level wasn’t already significant enough, the same region is now also the 61.8% Fibonacci retracement of the latest bullish leg, furthermore, we also have further support provided by the daily trend-line.
Although there seems to be a bearish sentiment at the moment, there will have been a lot of sellers entering the market as a result of yesterday’s daily close – and as we know manipulation to bait people into selling before pushing price higher isn’t uncommon. Price could easily reverse here and finish its relief rally before continuing into higher regions.
With that said, if we have a clean daily break of everything mentioned above – we can start to reanalyse and look for potential short setups.
Essentially, what happens in the coming days (and the weekly close) could be a huge catalyst for this pair’s future direction.
What do you think of this? Bearish or Bullish?
Have a great day!