Technical analysis for the Brent Crude Oil is relieving that the price reached the first target of the 3rd bullish daily wave at 1.618 FIB extension on the daily chart around 67.70. The price went as high as 71.34, touching both horizontal and dynamic resistance, and started pullback on both the weekly and the daily charts. This pullback reached the daily 50 EMA, support zone, and the 0.618 FIB retracement and bounced from it. However, the break below the dynamic support (ascending trend line) on the daily chart is a hint for the potential for further declines ahead. The focus for the week ahead is on the previous week’s low at 61.42, if the price break below that level it will accelerate the decline toward the 0.386 FIB retracement of the last weekly bullish run around 58.00.
On the other hand, if the price break above the previous daily high at 71.34 it will resume the bullish weekly trend and send the price toward the 1.272 FIB extension at 75.30.
Weekly chart:
Daily chart:
