Brent Crude looks to have started a second leg up off the January bottom of 45.22, indicating Brent has a good chance of heading higher from here. A decisive drop below the most recent swing low at 52.61 changes the bullish scenario shown in the below daily chart.

Weekly Chart

• Most recent 45.22 January low completed a 61% decline from the 115.68 June 2014 peak (over seven months), and a 64.8% drop from the 2012 peak of 128.37.

• Just prior to the low Brent completed a 88.6% Fibonacci retracement - at 47.07, of the three-year 250.6% rally that peaked at 128.37 in February 2012.

• RSI on a weekly basis was extremely oversold at the January bottom – the most in at least 10 years

Bullish signs:

• January low was followed by 39.3% rally
• Subsequent retracement hit a low of 52.61, almost reaching the 61.8% retracement at 52, and bouncing
• Next target for Brent is 70.36, the 100% completion of an AB:CD move off the January bottom
• Higher price levels to watch are:
o 72.13 : 38.2% retracement of prior seven-month decline
o 75.15 : CD leg = 127.2% Fib extension of AB leg
o 80.45 : 50% retracement
o 81.33 : CD leg = 161.8% Fib extension of AB leg

By Bruce Powers, CMT

About MarketsToday.net: MarketsToday.net® is an online financial portal covering the Middle East stock markets, plus spot Forex, oil, and precious metals, published in both Arabic and English. It is designed to help keep investors and traders up-to-date with the latest news, quotes, performance trends, and market developments in the Middle East stock markets.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.