For over a month, Brent crude prices have been filling a gap in the $67–$77 per barrel range (marked by the green rectangle on the chart). Two ascending waves are visible, with quotes moving quite slowly. Before the final push toward $77.0, the price might retreat to the $71.0 support level to gather strength for a bullish momentum. Typically, final climactic movements tend to be extremely sharp and occur quickly with wide spreads. However, the culmination point is still far off, and the price might continue moving toward $75 per barrel for another month. After testing the $75–$77 range, the technical balance between sellers and buyers will be restored, preparing the market for the next growth or decline cycles. It's important to note that as quotes move upward, the market begins leaving new gaps in bearish territory. A small, newly formed local gap between $70 and $71 is clearly visible. But the primary trend direction remains unchanged—upward.
It's better to avoid entering trades during the final stage of growth. This situation creates trading risks related to the fact that the significantly increased spread will prevent market players from securing good profits, as the entire potential gain will be consumed by this very spread.
The overall recommendation is to buy Brent crude.
Profits should be taken at the level of 75.0. A Stop Loss could be set at 68.0.
The volume of the opened position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance doesn’t allow opening a position of this size, it’s better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
