A bullish reversal pattern for Brent Crude has been confirmed and suggests a medium-term target of 88.49, says Andy Dodd, Head of Technical Research at Louis Capital Markets.
However, Dodd says that in the short-term there is resistance at 58.37 that needs to fail before a further rally. He points to a shooting star candlestick that appeared which gave warning that the level would hold short-term (see Chart).
As such, although Dodd remains bullish longer-term, he does not suggest adding to longs until a clean break of the 58.37 level.
His other weekly comments on futures markets include:
SX5E: In downtrend
SXXP: Potential bullish break but needs confirmation
DAX: Target reached and rally tiring
SPX: 2543 target reached and bearish ‘Inside Day’
Transports: Bearish price action
Gold: Bullish but nearing key resistance
US 10 Year Yield: Still bearish short-term
Dollar Index: Nearing support
EURUSD: Potential top
GBPUSD: Downtrend intact but more upside short-term
Copper: Bullish candle at support, 375 target
Miners: Bullish patterns confirmed
Banks: Still cautious stance
Read the full report.