A short-term upward correction is possible.

On the 4-hour chart, the price of Brent crude oil is trading at the level of 47.95 (a crossover of the 50.0% correction with the 61.8% arc for the short-term trend). A short-term upward correction along the 61.8% arc towards 49.20 (38.2% correction) is likely to happen in the nearest future. After the breakdown of the level of 47.95, the price will further decline towards 46.65 (61.8% correction) and 45.20. On the daily chart, the price rebounded down from the level of 52.80 (38,2% correction) and declined below 48.85 (23,6% correction) which indicates that the downward trend is still strong and the pair may decline towards August lows at 42.50.

Trading tips

Buy the pair from the current level with targets at 49.20, 49.80 and stop-loss at 47.95.

Alternative scenario

Open short positions if the price consolidates below the level of 47.95 with targets at 46.65, 45.20 and stop-loss at 48.50.

Brent: Fibonacci analysis

Brent: Fibonacci analysis

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