The price of brent crude oil (UKOIL) seems to be moving in an uptrend of late. This is because Saudi Arabia decided to take matters into their own hands and cut production, forcing the market to drive prices up (basic economics of supply and demand!). This is also coming at a time when the whole world seems to have forgotten about the bear attack on oil last year...
Thanks for viewing. This is my first post on UKOIL after doing several on US crude. Long story short, these didn't have the chart price history that UKOIL has.
The way I see the count now is that the 2016 to present rally is made up of waves (1) to (3) and we are somewhere in the wave (4) correction. The most recent August to October rally was a 3 wave...
UKOIL is approaching its support at 75.01 (61.8% Fibonacci retracement, 61.8% Fibonaci extension, horizontal overlap support) where it could potentiallyt rise to its resistance at 78.14 (100% Fibonacci extension, horizontal overlap resistance).
Stochastic (89, 5, 3) is approaching its support at 2.8% where a corresponding bounce could occur.
On the Brent oil chart you can now expect a test of significant resistance at 53.00. This level has previously been equivalent to the 50.00 level with the WTI. A successful breakout of 53.00 will allow growth to further resistance: 54.00, 57.50.
UK oil: HEAVILY SOLD OFF..!! What I see is some demand coming at 45 level so at the nearest term i think the market will atleast reach the wave 5 where the price is at 50 per barrel....We can trade a buy with stop loss at 43 and tp at 50 ...Cheers