In recent issues of the Commodity Specialist Guide we had been noting possible bull fatigue in Brent Crude Oil. A sharp sell-off found temporary support from a 38.2% pullback level, but failure here would herald a more prolonged correction phase.
- WEEKLY CHART -CONTINUATION
Bulls have not been able to hold the higher ground above the 121.25 76.4% mark (& an equality target).
The current interest here is a 38.2% pullback level at 104.53, which also lies close to a longer term 23.6% pullback, not shown. It has provided temporary support, but a subsequent breach would herald a more prolonged pullback phase. - DAILY CHART –Jul-11:
In the Commodity Specialist Guide we had pointed out that the Mar/Apr structure was hinting at bull fatigue.
This proved correct, and the market has collapsed after testing the 2.618 swing projection (using the prior May-10 downmove) close to 126.00.
The 107.28 16-Mar low has not provided accurate support, but held on a closing basis last week
Note initial resistance has come from the 117.81 118.25 07-Mar high so far –there is a good chance that s/term rallies will prove temporary ahead of further bear activity.
The interest is as much in the longer term charts at present.
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