BRENT Analysis: Expectations of global oversupply bearish for BRENT

January 16, 2020

By IFCMarkets

Expectations of global oversupply bearish for BRENT

On the 4-hour timeframe the BRENT: H4 has fallen below the 200-period moving average MA(200) which is rising.

We believe the bearish momentum will resume after the price breaches below the lower boundary of Donchian channel at 63.12. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above last fractal high at 64.16. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (64.16) without reaching the order ( 63.12), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

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