Brent Crude Oil - Buy on weakness

What we got here is a pretty good setup for buying on weakness going forward.
I´ve set the fibonacci´s from the lows in January 16´, to the recent highs in October 18´. We´ve already bounced back quite a bit from the 61,8% level around the $50 mark, and we´re now getting closer to a significant resistance @ 38,2% Fib around $64.

If we see the price trade even closer to $64, fresh sellers will show. Usually I would sell/short at this level. However, since the big move down already has played out, and we´re now in a recovery phase, the risk/reward is not tempting at all.

Since we´re in a recovery phase, I´m gonna buy on weakness going forward. We will during the coming week see where/if I start buying.
The levels I look at are $60 and $58.50. It looks like we´re building an inverted head and shoulder with a potential target to at least Ma200/23,6% Fib around $72.50

I´ll keep you posted

Note

I´m still waiting for the entry. I´m in no rush ;)

Trade active

Bulls have just pushed us above major Fibonacci resistance @ 63,91.
For this to hold we need a weekly close above that level.
If so, we have a inverted head-and-shoulder with a potential to at least the MA200 and 23.6% Fibonacci zone around $ 72.60

eurokarl

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eurokarl