Crude Close To Breakout
|An important support and resistance cluster has been met in Brent crude oil. It is marked by the yellow horizontal bar in the chart below. Price action knocked 6 times into that bar. Brent crude oil traded range bound all the way back to May 2018. The 79.50-80.50 price range held firm and Brent couldn’t pass through. It is a bullish sign if the Brent contract passes through that area within the next few trading days.
The Brent crude contract came very close to its 52-week high this week. A three-wave correction is the best interpretation of the drop into early September 2018. Subsequent wave action looks impulsive but has not been confirmed as such yet. Followthrough to the upside will most likely bring Brent to a new high.
Our real-time interpretation is that Brent trades inside a third wave to the upside if the yellow cluster gets passed. A swift upside continuation results as of that. All in all, we turn short-term bullish on crude as soon as the yellow support and resistance cluster gets run over to the upside.
Interested in more of our ideas? Check out Scienceinvesting for more details!
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.