Brent Crude Oil Technical Analysis and Short-Term Forecast
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Brent crude oil overcame the $64.81 swing high and settled above the XC (2.764) projection of the first wave up from $58.53, the 38 percent retracement of the decline from $73.73, and the 100- and 200-day moving averages today. Daily Trend indicators are bullish, prices are trading above the 20-, 50-, 100-, and 200-day moving averages, and the move above the $64.81 swing high breaks the trend down from $73.73. There is also a double bottom between the $58.27 and $58.53 swing lows. A broader bullish trend is emerging and would be confirmed by a sustained close above the smaller than (0.618) target of the wave up from $58.27 and the 62 percent retracement from $73.73 at $68.0.
The $65.8 larger than (1.618) target of the primary wave up from $58.53 was held on a closing basis. The daily Stochastic is overbought, but there are no bearish patterns or signals that call for a reversal. Therefore, the outlook for tomorrow is bullish. Settling above $66.1 will call for $66.9 and likely a push to challenge $68.0 in the coming days.
Nevertheless, the move up is due for a test of support, and the $65.8 larger than target of the primary wave up from $58.53 is a prime level from which a correction could occur. Again, there are no bearish patterns or signals that call for such a move, but caution is warranted. Should Brent crude oil fall tomorrow, look for key near-term support at $64.1. Settling below this will take out today’s open and the 200-day moving average, opening the way for a deeper test of support with the next threshold at $63.1.
