Revised update on the Outlook of Brent Crude Oil (3-Dec-2020)
1) Price has recovered since 21-Apr-20 from three significant events i.e. Jan-Mar 20 nosedive, the 20-year lowest price (USD16 in Dec 2001) and USD5.23 downside gap occurred on Mar 20.
2) The positive recovery has been preceded by a bullish divergence indication between the price and STO indicator.
3) A rebound off 38.2% retracement as a result of medium-term reversal from the strong resistance level of USD46.64, has been supported by STO oversold crossover which further accentuates the resumption of prior trend to form a new base.
4) The price just recently penetrated this strong resistance level and it is expected the price to be struggling to break out above USD50 (Immediate key psychological resistance) despite of the positive momentum as demonstrated in the MACD and rising combined 20&50-EMA.
5) If the price breaks above this critical resistance, the next medium-term targets shall be:
a) USD54.84 (Flag pattern target price which confluences with 61.8% extension)
b) USD60 (Second key psychological resistance which coincides with 78.6% extension)
2) The positive recovery has been preceded by a bullish divergence indication between the price and STO indicator.
3) A rebound off 38.2% retracement as a result of medium-term reversal from the strong resistance level of USD46.64, has been supported by STO oversold crossover which further accentuates the resumption of prior trend to form a new base.
4) The price just recently penetrated this strong resistance level and it is expected the price to be struggling to break out above USD50 (Immediate key psychological resistance) despite of the positive momentum as demonstrated in the MACD and rising combined 20&50-EMA.
5) If the price breaks above this critical resistance, the next medium-term targets shall be:
a) USD54.84 (Flag pattern target price which confluences with 61.8% extension)
b) USD60 (Second key psychological resistance which coincides with 78.6% extension)