Best Financial Markets Analysis Article During the summer months Brent Crude Oil bulls got a second wind, but have recently struggled near to resistance on the long term chart. An initial bear signal was given last week, and we now look for the confirming move.

The Commodity Trader’s view

WEEKLY CHART - CONTINUATION:

The 38.2% recovery level has proved a tough hurdle to pass, and remains first key resistance on this long term chart.

The recovery from the late Dec-08 low shows signs of maturity now, so a decent pullback at this stage would not be a surprise.

DAILY CHART – NOV-09:

The break/close below both the main rising support line and 66.66 04-Sep low was a clear bear signal.

We had thought that the dual Fibo support could prompt a s/term bounce, hence we did not want to chase the market.

In the Commodity Specialist Guide we were sellers on a bounce, at 68.75, just ahead of the old rising support/return line, with initial stops just above the 72.20 17-Sep high.

A better break of recent support, and the channel base projection just below, would be useful bear

confirmation now, with 61.00 targeted for partial profits. A later target centers on the 61.8% level. The current bear signal would be negated on a recovery back through that 72.20 high.

Mark Sturdy
Philip Allwright

Seven Days Ahead
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Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

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