A fall continuation is possible.

For more than a week, Brent crude oil has been trading within a range between the levels of 43.40 (0% correction) and 45.10 (23.6% correction). At present, the key level seems to be at 44.15. Its breakdown would lead to a fall towards 43.40, while the breakdown of the lower border of the range could send the price towards the level of 42.50 (0% correction of the medium term trend). Otherwise, if the price bounces off the level of 44.15 a short-term growth to the upper border of the range at 45.10 is possible. On the daily chart, the 50% Fibonacci fan line serves as the resistance and pushes the price towards the level of 42.50. An upward trend can resume after the breakout of this line and a price consolidation above the level of 46.00. In this case an upward correction to the level of 48.85 (23.6% correction) is likely.

Trading tips

Short positions can be opened from the level of 44.00 with targets at 43.40, 42.50 and stop-loss at 44.40.

Alternative scenario

Long positions can be opened from the level of 44.50 with targets at 45.10, 46.14 and stop-loss at 43.90.

Brent: Fibonacci analysis

Brent: Fibonacci analysis

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