Which way next for Brent crude prices?
After OPEC supply cuts boosted oil prices, our chartist thinks the immediate situation is fairly simple.
25th March 2019 08:42
by Alistair Strang from Trends and Targets
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After OPEC supply cuts boosted oil prices, our chartist thinks the immediate situation is fairly simple.
Brent Crude Big Picture
We had friends round for dinner on Saturday. Okay, we had Chinese takeaway containers on the table, plates, cutlery, several bags of chips, and the inevitable bag of prawn crackers for the animals. And wine, lots of wine. Mrs T&T, despite proper chef credentials, likes relaxing with friends rather than cooking for them.
During the course of the evening, it became clear there was an almost ridiculous notion the market analyst in the room would know, with complete certainty, what was going to happen in the future as a result of Brexit.
The shock, when it was admitted I don't have a clue, should not have been a surprise. But, at present, there are many indications of share prices being placed in fairly tight ranges until the current chaos - if it is chaos - can be resolved.
Personally speaking, it's difficult to trust anything written or broadcasted, thanks to the level of agenda being promoted.
During the last week, there has been further evidence of share prices being stalled into a range with some interesting movements against the retail banks.
Surprisingly, even Brent crude (an international benchmark price) seems to be showing the potential of it being trapped for a while.
The immediate situation against Brent seems fairly simple.
Movement now above $69 should promote further growth to an initial $75. If exceeded, secondary is at $84. Visually, neither ambition is particularly helpful as it appears the market intends to match the high of last year, but certainly no higher without some volatility first.
More probable, if our suspicion about "parking" proves correct, shall be weakness now below $64 proving capable of reversal toward $55 and a bonk against the uptrend since 2015. A more severe (but visually unlikely) issue occurs, should the price manage below the red uptrend as future weakness to $35 becomes possible.
For now, we favour the visuals which tend to suggest a repeat of last year's performance shall prove viable. As a result, it will hopefully be worth watching for similar dance steps enacted by oil related share prices.
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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