Brent Crude Oil Technical Analysis and Short-Term Forecast
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Brent crude oil continues to trade in a range that could prove to be a correction of the rise from $59.97. However, today’s decline has put the near-term odds in favor of Brent testing $63.7 again. This is a key objective for the near-term because it is the smaller than (0.618) target of the wave down from $65.95 and the 38 percent retracement of the rise from $59.97. Settling below $63.7 will call for another test of the 20-day moving average at $63.4 and likely a decline to fulfill the $62.9 equal to (1.00) target of the wave down from $65.95.
Nevertheless, $63.7 has been resilient support for the past week. Moreover, the $63.38 swing low may form the right shoulder of an inverse head and shoulders pattern with a neckline around $66.0. Should Brent continue to hold $63.7 and overcome the $65.0 smaller than target of the wave up from $63.38, look for another test of key near-term resistance at $65.8. Settling above $65.8 will put the odds back in favor of a continued rise above the neckline to challenge $66.5 and likely the $67.0 smaller than (0.618) target of the wave up from $59.97.
