UKOIL: Brent testing support off the old highs. Strong still
Brent Crude Oil UKOIL
Brent recently broke the long term parallels that had carried it faithfully within its force ever since the lows at
44. Now it's almost exactly 50% higher, with a new high set at 65.70.
We were short on the break below the parallel and then closed out around 61.15 for around 90 pips profit. Good
thing we did. Bad thing we didn't go massively long again there with stops just below for a tiny loss if wrong at that
point. Easy to say now, and we would have in 'normal' circumstances, but that big broken parallel above was
stopping it from even being contemplated. What a shame. A parallel that had been so faithful for so long now let us
down with a poor technical signal (in hindsight only, unfortunately) for the first time since inception from the
lows. Sometimes even your best girl/boyfriend can let you down.
The resulting 450 pip rally has blown every bear clean out of the water, creating a massive impulse wave which is
contained within the parallels shown on the chart. It is now probing the intersection of the lower parallel with
fixed support at 64.25, the old highs - it's a buy here with stops below 64.15 for small loss if wrong. It's a sell again
when the upper parallel is tested . Brent remains strong whilst travelling within the impulse wave and only turns
near term negative again for test of 63.03 if the lower smaller parallel is lost at any point from here. Until we see
that happen, look to buy dips to this smaller parallel with stops below it by 15-20 pips
Brent recently broke the long term parallels that had carried it faithfully within its force ever since the lows at
44. Now it's almost exactly 50% higher, with a new high set at 65.70.
We were short on the break below the parallel and then closed out around 61.15 for around 90 pips profit. Good
thing we did. Bad thing we didn't go massively long again there with stops just below for a tiny loss if wrong at that
point. Easy to say now, and we would have in 'normal' circumstances, but that big broken parallel above was
stopping it from even being contemplated. What a shame. A parallel that had been so faithful for so long now let us
down with a poor technical signal (in hindsight only, unfortunately) for the first time since inception from the
lows. Sometimes even your best girl/boyfriend can let you down.
The resulting 450 pip rally has blown every bear clean out of the water, creating a massive impulse wave which is
contained within the parallels shown on the chart. It is now probing the intersection of the lower parallel with
fixed support at 64.25, the old highs - it's a buy here with stops below 64.15 for small loss if wrong. It's a sell again
when the upper parallel is tested . Brent remains strong whilst travelling within the impulse wave and only turns
near term negative again for test of 63.03 if the lower smaller parallel is lost at any point from here. Until we see
that happen, look to buy dips to this smaller parallel with stops below it by 15-20 pips