Seasonality has pushed Brent Crude higher since late January and crude oil currently looks bullish, but this upwards pressure will soon run out of steam, according to David Linton, Chief Executive at Updata.
Linton’s charts show that the positive seasonality will likely be over by the end of April. He says it should be remembered that in a downtrend, sideways moves or short-lived up moves are often followed by long downward moves, so “we shouldn’t get too excited about crude in the medium- to long-term”.
In the mean time, Linton’s upside target is 62, although he thinks it would need to mount a significant counter-trend rally to achieve this as there are several levels of resistance to break through. In the short-term, Linton’s downside target is 39.20.
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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