A downward movement is likely to continue.

At the beginning of the week, the price of Brent crude oil declined notably within a downward correction. On the 4-hour chart, the price tested the level of 50.00 (50.0% correction), but failed to consolidate below it. However, in case of success, it may reach the levels of 49.15 (61.8% correction) and 48.20. If the price bounces off the level of 50.00, a growth to 50.86 (38.2% correction), 51.90 (23.6% correction) and 52.35 will follow.

On the daily chart, the level of 48.85, which the price may reach at the end of the week, is worth noting, as the 38.2% arc, the 50.0% fan and 23.6% correction have concentrated there. The breakdown of this level may lead to a long decline to August lows at 42.50. Otherwise, the price would start growing to 52.80 (36.2% correction) and 56.00 (50.0% correction).

Trading tips

Short positions are preferable and can be opened from the level of 49.70 with targets at 49.15, 48.20 and stop-loss at 50.10.

Alternative scenario

Long positions become valid after the consolidation above the level of 50.86 with targets at 51.90, 52.35 and stop-loss at 50.50.

Brent: Fibonacci analysis

Brent: Fibonacci analysis

Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.

Follow us in social networks!
Live Chat
Leave feedback