A smooth decline is likely to continue.

On the 4-hour chart, the price of Brent crude oil is testing the 50.0% correction level (47.95). The price seems to be heading down to the level of 46.65 (61.8% correction), after the breakdown of which it may fall further to 45.20. However, the price is more likely to turn up at the level of 46.65 and grow to 49.20. On the daily chart, Brent crude oil is trading near the level of 48.85 (23.6% correction) and is approaching a crossover with the 23.6% arc. If the crossover is broken up, the price may grow to 52.80 (38.2% correction).

Trading tips

Sell the pair below the level of 47.90 with the target at 46.65 and stop-loss at 48.50.

Alternative scenario

Pending buy orders can be placed at 46.65 with targets at 47.95, 49.20 and stop-loss at 46.30.

Brent: Fibonacci analysis

Brent: Fibonacci analysis

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