Brent found support at
$42 levels and has reversed to test $47 . In spite of heavy short built
up, the reversal may have come as a surprise as traders
scramble to cover their shorts, in the process propel the prices higher. On the daily charts, Brent may find resistance at $47-$47.50
levels and may consolidate between $45 to $47 levels before the next move.
On the weekly charts, with the momentum picking up, a crossover
of the trigger (yellow dotted) line above zero may indicate resumption of the
uptrend after a brief correction from $52 to $42, a 38.2% retracement,
common during an up move.
With the long term trend gradually picking up, higher targets nearing $65 cannot be ruled out
in the next few months.
We had earlier indicate the possibility of Brent correcting to
$43 levels and resuming the uptrend . See post :
