A decline might continue.

On the 4-hour chart, having grown to its 2-month highs, the price is correcting down. The downward correction might reach the levels of 34.90 (23.6% correction), 34.50 and 34.00 (38.2% correction). A growth would resume if the price turns up and consolidates above the level of 36.35. In this case, the target for Bulls would be the level of 37.50 (38.2% correction for the medium-term trend).

On the daily chart, the price has reached the 50.0% fan line, directed down, that might lead to a slow decline towards the level of 33.80 (23.6% correction), near the crossover with the 38.2% arc. A growth would continue if the price breaks out the fan line and consolidates above the level of 36.20. In this case, the first target would be the level of 37.50 (38.2% correction).

Trading tips

Sell the pair from the level of 34.90 with targets at 34.50, 34.00 and stop-loss at 35.30.

Alternative scenario

Buy the pair is the price consolidates above the level of 36.35 with the target at 37.50 and stop-loss at 36.00.

Brent: Fibonacci analysis

Brent: Fibonacci analysis

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