Brent Sits at a Technical Juncture

The break above $65 saw continued gains to the upper bearish channel. This boundary is another clear line in the sand for bulls and bears.

brent

Brent; Commodities trading account…

 

Yesterday’s close produced a Morning Star reversal pattern above the Monthly Pivot and $64 support. This paints a near-term bullish bias but we do remain within a bearish channel, which leaves potential for another cycle lower.

However a clear break above yesterday’s $67 high invalidates the bearish channel and assumes a continuation of the dominant bullish trend. The break of the channel would could also assume the end of an ABC correction from the 70.21 high.

brent

Brent; Commodities trading account…

We can use a break below the Daily Pivot to assume a resumption of the bearish channel, or a clear break above $67 for a break of the channel.

At time of writing I favour a bullish continuation pattern to occur above the daily pivot, however as we have US data out tonight we do risk sideways trading to occur leading up to it.

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