An important support and resistance cluster has been met in Brent crude oil. It is marked by the yellow horizontal bar in the chart below. Price action knocked 6 times into that bar. Brent crude oil traded rangebound all the way back to May 2018. The 79.50-80.50 price range held firm and Brent couldn’t pass through. It is a bullish sign if the Brent contract passes through that area within the next few trading days. The Brent Elliott wave is in that case within a strong fractal.
The Brent crude contract came very close to its 52-week high this week. A three-wave correction is the best interpretation of the drop into early September 2018. Subsequent wave action looks impulsive but has not been confirmed as such yet. Followthrough to the upside will most likely bring Brent to a new high.
Our real-time interpretation is that Brent trades inside a third wave to the upside if the yellow cluster gets passed. A swift upside continuation results as of that. All in all, we turn short-term bullish on crude as soon as the yellow support and resistance cluster gets run over to the upside.
Do you want to know more about our multiple time-frame assessments of the crude market? That’s the subject of discussion in our premium analysis.