Brent Crude did test last week’s high at 112.90. We expected the market to struggle here and entered shorts with a stop above 113.30. This worked nicely as the market topped at 113.29 and we have now broken the one month uptrend this morning. Hold on to those shorts then as we look for continued weakness to 111.11 and quite possibly 110.76. There is a good chance of a low for the day within this band so worth taking profit on those shorts but any longs here need a stop below 110.54.
Resistance now at 110.75/95 could hold any bounce this morning but if we break higher this can take us back 112.60/90. We can try shorts again here with a stop above 113.30. Buy in to longs on a break higher then looking for 113.63 and possibly 114.31/50 which fills a small gap to exit those longs.
Long term levels
112.90 Last Week’s High
112.14 100 Week Moving Average
111.16 100 Day Moving Average
109.62 200 Day Moving Average
109.38 Last Week’s Low
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