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

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