Brent crude has recently entered a consolidation phase, preparing for a corrective rebound after completing a long-awaited break below $66.5 per barrel. The formation of a bullish triangle on the chart, with an upper limit at $65.6, confirms this reversal to kick in. Such a pattern is clearly visible on the 15-minute (M15) timeframe, and passing above $65.6 will activate the trade setup. The ensuing trajectory suggests at least two prospective targets. The primary and most probable objective is $66.5 (also being the closest), which is a rational technical retest of the major level from which quotes initially dropped. A more ambitious secondary target is the upper limit of the resulting price gap at $67.70. Brent crude typically sees a return at this threshold. However, this goal is less likely to be achieved due to the greater distance and potential weakness of bullish momentum. Therefore, $66.50 is the preferred and optimal target for oil.
The ultimate recommendation is to buy Brent crude. Profits are taken at $66.50. Stop loss is set at $65.00.
Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
