Brent Crude has carved a potential top around $44.00 handle. The commodity has dropped lower below $40.00 as we prepare to publish this article. The entire rally between $15.75 and $44.00 seems to have unfolded in 3 waves until now. If a triangle is unfolding, we would witness another 3 waves drop towards $26.00 (fibonacci 0.618 of the previous rally). If an impulse is underway, Brent could find support around $33.00 (fibonacci 0.382 retracement of Wave 3). Either way, Brent Crude is heading lower from here. We therefore turn our outlook to bearish for the next few weeks to come. Immediate support is seen around $37.20, and a break lower would confirm that a meaningful top could be in place at $44.00 levels.
Strategy:
Short against $44.00, targeting $33.00 and $26.00 respectively.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.
Strategy:
Short against $44.00, targeting $33.00 and $26.00 respectively.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.