Brent Crude Oil Technical Analysis and Short-Term Forecast
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Brent crude oil continued to decline and took out the $81.45 swing low today. Prices also settled below the larger than (1.618) target of the waves down from $108.34 and $98.99 and the equal to (1.00) target of the wave down from $108.04. The 89 percent retracement from $75.06 held, but the wave formation calls for a continued decline. Tomorrow, look for a test of the 62 percent retracement from $58.76 at $77.7 and possibly the $75.9 target of the confirmed double top that formed between the $108.34 and $108.04 swing highs. Settling below $75.9 might initially be a challenge, but this will open the way for $74.1 and lower.
The daily Stochastic is oversold, and the RSI is nearing oversold territory. The move down is due for a corrective bounce, but there are currently no bullish patterns or confirmed signals that call for such a move. Even so, should prices rise, look for today’s $81.5 midpoint to hold. Key near-term resistance is today’s $83.8 open. Settling above this would put the near-term odds in favor of a more substantial correction before the move down extends.
