Brent Crude : Currently undergoing a complex WXY correction
Brent Crude is currently on a bearish trend and may be approaching a demand zone with prices falling within the range of 83.5 - 84.5. It's possible that a price rebound could occur in this range, targeting levels between 87.5 and 89. However, it's worth noting that resistance may emerge at these levels, potentially leading to a subsequent downward price movement.
Currently, the market seems to be in the initial phase marked as "leg a" of Y of a corrective pattern denoted as W-X-Y. This correction could potentially find its conclusion in the price range of 78-80. Interestingly, this range closely aligns with the 61.8% Fibonacci retracement level, calculated from the low point of 71.47 on May 31, 2023, to the high point of 95.91 reached on September 19, 2023.
Currently, the market seems to be in the initial phase marked as "leg a" of Y of a corrective pattern denoted as W-X-Y. This correction could potentially find its conclusion in the price range of 78-80. Interestingly, this range closely aligns with the 61.8% Fibonacci retracement level, calculated from the low point of 71.47 on May 31, 2023, to the high point of 95.91 reached on September 19, 2023.
Weaker-than-expected Chinese exports in October also created doubts about the demand outlook in the world's largest crude oil importer.
On the Technical Side : The pronounced downward movement in the price of crude oil appears to be characteristic of the third wave within a larger five-wave structure . Notably, there is a prior support level at the current price, suggesting the possibility of a relief rally towards the 83.5-84 level to complete the fourth wave. Subsequently, a further drop to the 78-79 price range is anticipated to finalize the fifth wave, of wave c of (y) of a complex (w)-(x)-(y) correction structure.