Brent crude oil futures gave a strong performance in Wednesday's trading session, catching more speculative and technical buying as the uptrend continues to encourage the bulls. Brent crude has continued to gain over the WTI crude oil futures, and once again successfully held key support above $120 per barrel. Autochartist detected the day's action as a breakout from the pennant chart pattern illustrated here on the 240-minute time frame.
The mild correction earlier in the week touched the lower trend line of the pennant to provide the swing low near $121.50 per barrel. Sustained buying ensued, carrying the market quickly towards the resistance at $122.55 per barrel. A soft initial breach of this level triggered a buy signal on low momentum as the price wavered slightly before resuming the rally.
Autochartist projects a price target of at least $124.86 per barrel to complete the breakout, a level that Brent nearly managed to reach before the close of trading Wednesday. Continued strength is likely given the momentum appears to be picking up once again, which may carry the market to the upper end of the forecast near $128 per barrel by the nd of the week. For further information on this and other Autochartist products, visit our website at www.autochartist.com