Technical Analyst, Saxo Bank Group
Brent oil is trading within the consolidation area from 10 years ago prior to the collapse in 2015.
Some resistance around $115.76 and $126/brl .
The energy from the Collapse in Brent oil prices back in 2020 gives us 1.764 Fibonacci projection price at $114.36 which is roughly where the possible fifth wave extension is - $116.68 i.e. same length as the third wave. So is this the fifth exhaustive wave higher ?
Normally third wave is the longest but for commodities longest wave is often the fifth. Most likely due to the panic that can arise from rising prices in a commodity everybody needs. If this is the fifth wave and if it will become longer than the third, which currently looks likely, we could see it extend to $126 maybe even $136. However, $126 is a strong resistance level.
WTI crude oil is testing resistance at around $110/brl. If we see a daily close/settlement above there is some resistance around $114.85.
The energy from the Collapse in WTI prices back in 2020 gives us 1.764 Fibonacci projection level almost spot on previous all time highs at $147.26. 1.618 projection at 131.14 could offer some resistance.
For this very bullish scenario to be put on neutral a drop below $95.30 is needed. Currently no divergence on RSI and MACD indicating higher levels.
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