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
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Entry Level: $64.80.
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Protective Stop: $63.54.
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1st Profit Target: $65.67.
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2nd Profit Target: $66.29.
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3rd Profit Target: $67.52.
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.
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