Oil Brent - An Elliott Wave Sequence Expects an Upward Reaction


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.

Brent

 


 

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