20 Feb 2015
Brent Crude Oil: Justification for a larger rally? - Westpac
FXStreet (Bali) - David Coloretti, CMT, Technical Analyst at Westpac, look sat brent oil technicals as to analyze whether or not there is justification for a larger rally in the coming months.
Key Quotes
"The recent rally in Brent Crude Oil has amounted to a minimum Fibonacci retracement (23.6%) to date. It’s important now to ascertain whether the there is justification for a larger rally in the coming months."
"The chart highlights many bullish and bearish engulfing months, all of which amounted to multimonth reversals (ex. 2010). A monthly close above 58.02 will complete another bullish engulfing month."
"We note the failed break of LT trend support in Jan / Feb and the recent upswing in LT momentum. These factors add weight to the view that the upward correction will likely continue if a bullish engulfing month is completed in Februar."
Key Quotes
"The recent rally in Brent Crude Oil has amounted to a minimum Fibonacci retracement (23.6%) to date. It’s important now to ascertain whether the there is justification for a larger rally in the coming months."
"The chart highlights many bullish and bearish engulfing months, all of which amounted to multimonth reversals (ex. 2010). A monthly close above 58.02 will complete another bullish engulfing month."
"We note the failed break of LT trend support in Jan / Feb and the recent upswing in LT momentum. These factors add weight to the view that the upward correction will likely continue if a bullish engulfing month is completed in Februar."