Brent Crude is holding on to the 2 week up trend and if we can hold on to 111.70 today we can retest 112.40/50 with a break higher to target last week’s high at 112.90. Expect the market to struggle here as we start to look over bought in the short term.
Try shorts with a stop above 113.30 for 113.63 and possibly 114.31/50 which fills a small gap.
Below 111.70 we find good support at 111.43/53 which should see us bounce and could mark the low for today if tested. However a break of 111.10 is then likely to pressure prices down to 110.54/38. Failure here today then sets us up for further losses to a target of 109.80. Good chance of a bounce off this level today but if attempting longs here we need a stop below 109.50 for 109.05.
Long term levels
112.90 Last Week’s High
112.14 100 Week Moving Average
111.16 100 Day Moving Average
109.62 200 Day Moving Average
109.38 Last Week’s Low
The article was first published by DayTradeIdeas.com