Brent Oil, in its hourly chart, presents a corrective sequence in progress, which could react bullishly soon. The corrective formation started on January 08th, when the price found sellers at $71.31 per barrel. This first leg, identified as wave A of Minor degree labeled in green, completed its decline on January 15th at $63.54 per barrel. The current movement corresponds to a wave B. According to the Elliott wave theory, in a corrective formation, this movement must have three internal segments.
The Brent Oil chart reveals that the price action runs in a wave b of Minute degree labeled in black. The current internal path could react upward in the area between $64.02 and $63.62, from where the price could develop the wave c of Minute degree.
A long position will trigger if the price breaks and closes above $64.80 per barrel. Our conservative scenario foresees a potential first target at $65.67 per barrel.
The bullish progress could drive to the price to reach $66.28 and extend until $67.52 per barrel.
The invalidation level of our bullish setup is at $63.54 per barrel.
Trading Plan Summary
Entry Level: $64.80.
Protective Stop: $63.54.
1st Profit Target: $65.67.
2nd Profit Target: $66.29.
3rd Profit Target: $67.52.
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