Brent Crude has been trading between $61 and $63 in the last 48 hours as the week closes. What should we expect from long and short term perspectives?
September 27, 2019 | AtoZ Markets - Since last week, the energy market has been on the decline. Brent Crude (XBRUSD) shed 12% after it almost hit $70 early last week. Currently, XBR is traded at $62. If it breaks below the current sideways range, we might see a hit of $59 or $57 in the short term. The current Brent Crude futures will expire in November.
What is XRBUSD (Brent Crude Oil)?
哪个平台能玩腾讯分分彩五星Brent Crude is one of the two main benchmarks for the purchase of oil worldwide, the other being the West Texas Intermediate (WTI) Crude or US Oil. The Brent Crude is extracted from the North Sea and is also known as the UK Oil, London Brent or Brent petroleum. Brent is currently priced higher than WTI Crude and both are traded on the Futures market.
Brent Crude: important price levels
The Oil market has recovered moderately from the crash that happened in the last quarter of 2018. However, prices have returned downside as supply concerns weigh in. Brent will end the week bearish but it remains to be seen whether it would break away from the current intraday $61-to-$63 range.
Resistance Levels: $70 and $75
Support Levels: $58 and $55
XBRUSD price projection: long term Elliott wave analysis
From the weekly chart above, we can see what long term pattern is emerging since the rally to $147 in June 2008. From $147 in 2018 to $27 in January 2016, XBR completed a zigzag pattern which could signify the end of the correction of the bullish trend preceding $147. If we are to count an impulse wave from $27 to continue the long-term bullish trend, then Brent Crude could hit $200 or higher in the next decade. On the other hand, it might continue sideways between $90 and $30 till the year 2021 to complete a very large triangle pattern. That's a long time. Let's focus on the short term price patterns.
XBRUSD short-term Elliott wave analysis
With $68-70 acting as the short term resistance level, XBR could falter deeper below the $55 support level to hit the $50 handle. However, a minor corrective rally to $63-67 could happen depending on how deep the current bearish swing goes before the minor bounce. Unless a break above $70 happens, are expected to slump further.