Brent Crude has bottomed, at least for the next few months, according to David Linton, Chief Executive at Updata.
Linton says not to be surprised to see crude making new lows later in the year, but for the next few months it looks like crude will be trading off the bottom in a counter trend move. He would only be properly bullish on Brent crude, however, if it can get above the cloud on daily ichimoku charts and into the mid to high 40s, which is a “long way away”.
On the 60 minute chart, Brent crude is now above the cloud having pierced it on 21 January. A cluster of upside targets point to 36.8 and seasonality is helping it sustain an uptrend recovery. Linton would only be bearish in the short-term below around 33 dollars.
For details, watch Updata’s Technical Analysis for Energy Traders, which includes an analysis of the major energy, currency and stock markets:
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