Brent Crude: Possible Recovery In The Short Term
ICN.com | Jan 08, 2015 07:10AM ET
Brent Crude February hit 4996 then bottomed at 4966. I think we will now stage a recovery in the short term at least and yesterday could mark the low at this stage. Calling a bottom in such a strong bear trend is either brave or stupid but I look for a retest of yesterday's high at 5175/5185. Be ready to go with a break higher to target 5285/5295. There is a good chance of a high for the day but I feel selling into shorts could be too risky. If you want to try it use a stop above 5350. Again be ready to go with a break higher using 5300/5290 as support for a move towards 5375 then resistance at 5500/5510.
Immediate support at 5060/50 and could be worth trying longs as we look for a recovery. However be ready to try longs again around yesterday's low at 4980/70. We are looking for a bullish double bottom pattern here but we need stops below 4940. Be ready to go with a break lower as this maintains the bear trend & target 4925, 4842, 4795/90 & 4740.
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