Brent Crude Oil futures pushed through key level resistance to initiate what may become a major breakout from the recent trading range. Autochartist identified the move as a breakout above an Ascending Wedge chart pattern illustrated here on the longer term 240-minute time frame.
Brent Crude had been range-bound for the last several weeks, as the US Crude Oil futures gained ground to narrow Brent's premium to just over $10 per barrel. The momentum from the US market now appears to be catching up with the price of Brent, with today's upside breakout registering a maximum 10-bar breakout as measured by Autochartist.
The follow-through from the start of the rally has already carried the price to the minimum projected price of $110.98 per barrel, with no meaningful price retracement as of yet. The strength of the move implies a possible continuation to the top end of the forecast near $112.40 per barrel. If achieved, this could bring in momentum buyers as well as short-covering as stop-loss orders are triggered. The result may be a prolonged rally above the target area and towards the $120 per barrel mark.
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