A decline may continue.

On the 4-hour chart, the price rebounded from the level of 47.79 and is heading to 49.15 (23.6% correction), towards the crossover with the 23.6% arc. The breakout of this level may lead to a growth to 50.00 (38.2% correction). If the price turns down, it may try to decline along the 23.6% arc back to 47.79.

The daily chart shows a more interesting picture. The price is at the crossover of the 50.0% fan and the 23.6% correction at the level of 48.85. An upward trend will consolidate only after the price overcomes the area of high resistance at 48.85-49.55. In this case, a growth may continue to the level of 52.80, the crossover of the 38.2% correction, the 50.0% arc and the 61.8% fan. However, a decline to 46.00 seems to be a likelier scenario.

Trading tips

Short positions can be opened from the level of 47.70 with targets at 46.00, 45.00 and stop-loss at 48.50.

Alternative scenario

Long positions can be opened above the level of 49.55 with the target at 52.80 and stop-loss at 48.80.

Brent: Fibonacci analysis

Brent: Fibonacci analysis




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