A big drop in the energy complex sent Brent Crude Oil futures towards a projected support level on the Autochartist platform's 240-minute time interval. The move had been anticipated since a successful retest of resistance created by a Channel Up chart pattern near the $116.00 per barrel peak.
Brent Crude has been trading inside of this Channel Up chart pattern since the most recent rally began at $106 per barrel. Since then the pattern has become well entrenched, with a high reading in the Uniformity, Initial trend, and overall Quality. Clarity has been diminished by the erratic volatility near some of the price swings, but the boundaries of the channel remain sharply defined.
The current downdraft is likely to resolve in a retest of the channel support at the $111.00 per barrel price, which will set up a pivot point on the chart. A continuation through support will initiate a breakout with a forecast from Autochartist, while a reversal from the $111.00 level would suggest a continuation of the channel-bound trading. If this occurs, a move to $118.00 is possible as the long term bullish trend persists.
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