Brent Crude Carves Intermediary Top Around 44.00

Brent Crude has carved a potential top around $44.00 handle. The commodity has dropped lower below $40.00 as we prepare to publish this article. The entire rally between $15.75 and $44.00 seems to have unfolded in 3 waves until now. If a triangle is unfolding, we would witness another 3 waves drop towards $26.00 (fibonacci 0.618 of the previous rally). If an impulse is underway, Brent could find support around $33.00 (fibonacci 0.382 retracement of Wave 3). Either way, Brent Crude is heading lower from here. We therefore turn our outlook to bearish for the next few weeks to come. Immediate support is seen around $37.20, and a break lower would confirm that a meaningful top could be in place at $44.00 levels.

Strategy:

Short against $44.00, targeting $33.00 and $26.00 respectively.

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