UKOIL: Brent Crude Oil Short Term Topping FormationBrent Crude Oil UKOIL Update
Bad Bad Thing
Sometimes you have to own up to an over-ambitious call, this
one made worse by sheer blindness, which really stings.
It ain't an eroor in the chart which is as good as gold still right
now. More an error with the pilot...who spotted a large and
still bona fide reverse head and shoulders with an eventual
upside target at 91.86 - but completely failed to see the very
obvious smaller reverse head and shoulders shown on the
chart, this time with an upside target at 80.15. Yesterday,
that level was reached.
My very bad. Sorry for that blind oversight.
Now Brent is unwinding within a range bounded by
80.15-80.57 on the upside and 77.85 on the downside. This
range belongs to day traders in the neat term, selling off the
high line and buying back off the 78-77.85 range.
If Brent is to go into a longer period of consolidation it should
be now, from the top of the completed smaller RHS target at
80.15.
If so, it will soon go on to break below the 77.85 level and
that should trigger swing traders short looking for a test of
72.69 and the lower dynamic before it bounces away to the
upside again. Worth following once we see it.
Returning to the upside Brent has to break and hold above
80.60 to trigger the next long from here up to 87. The next
resistance level of any real significance above here lies at
88.35 and then 91.86 which is the longer term target implied
by the larger and more ambitious of the two RHS's.
Until then, unless day trading this complex, swing traders are
advised to await the next signal here before following with
stops around 50 pips or so above/below the break levels when
triggered.
