This is the Brent Crude continuation chart. It’s been quite a week here, starting off on Monday making a new high before we saw a vicious sell off. Tuesday saw the Bulls make a decent effort to claw back the losses, but yesterday the Bears re emerged.This is an important time now as we sit just above the key 38.2 Fibonacci Retracement level at 992. To the upside we have a new Marabuzo line pinning us back at 102.60. Marabuzo’s and Fibonacci’s are explained on our recent archive reports. 101.89 emerged as an intra day level yesterday and will be decent resistance today.
Indicators in Play
We have spoken about time frames before but we feel it is appropriate to expand a little on intra day levels. We have shown the 30-minute chart where you can see a two-hour period where 101.89 capped any attempted recovery. Bears that wish to add to their short building position will use this as a reference point to sell some more. If this were breached they would then begin to reconsider the situation. Shorter-term traders that use 30-minute charts should also use 15 minute or even 5-minute time frames in the same manner.
Summary
In the longer term we are still with the Bulls as long as we do not close below the 38.2 Fibonacci Retracement level at 992. This is a dangerous time though and we would like to see 101.89 and 102.60 re taken sooner rather than later.
David has been
analyzing and trading the worlds financial markets for the past 25 years. After an initial grounding with Mercury Asset Management and Warburg Securities he went on to set up his own brokerage operation in London. Since then he has appeared regularly on Bloomberg Television and been involved in providing analytics on behalf of some of the worlds major exchanges. He is also a member of the Society of Technical Analysts.
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