Brent Crude Oil: The Bearish Pressure

Brent Crude Oil Technical Analysis

We have been patiently observing the markets as risk aversion begins to dominate the market as discussions between Greece and the EU near a breaking point. We have anticipated the risk aversion mode to dominant the markets, which is why we are at a decent profit in our short trade in DJ30, +300 points at the time of this writing.

We have been monitoring crude oil prices for some time as we have a technical entry to long the commodity. As this is a monthly entry it is essential we will attempt to time our entry in order to limit the potential drawdown in the long trade. Unlike an intraday entry, the strong gains we are expecting may materialize within 24 hours or only at the beginning of next month.  Outside market events are likely to act as the fundamental trigger for strong gains we are anticipating for crude oil.

UK Brent Crude Oil Monthly Chart

Please click on the chart to enlarge:

Brent Crude Oil Trading Strategy, 10 March, 2015

Brent Crude Oil Monthly Chart, 10/03/15

Since the bearish breakout that occurred in September 2014, price has reached the 100% objective of the technical breakout, which indicates a moderate retracement may be seen. Recent weakness enables us to exercise buy-on-dips strategies, which only enhances the Risk-Ratio (RR) of the long trade.

Brent Crude Oil: The Bearish Pressure
Brent Crude Oil: The Bearish Pressure

By the book, the protective stop loss order must be placed below 44.76 but we are attempting a tighter stop for the position. As a result we ask you to be aware the protective stop loss order may be altered to meet the requirements of the monthly trade.

Long @ market price
Take Profit: 78.10
Protective stop: 49.10
Risk-Ratio: 1 : 2.5 (approx.)

26/03/15 UPDATE: As we updated our subscribers, the tension in Yemen led to moderate gains in crude oil. Brent is currently trading at 58.57 a barrel. We are closing 15% of the long trade at market price.

27/03/15 UPDATE: Brent crude oil is trading at 57.76. We are concerned a deeper retracement may materialize, which is why we are closing another 15% of the long trade at market price. The expected bullish outlook for Brent crude oil has not been negated.

01/04/15 UPDATE: After moderate declines the price was able to erase the losses, trading above 57.00 at the time of this writing.

06/04/15 UPDATE:  Brent crude oil is trading at 57.95 at the time of this writing. We are aware of the news Saudi Arabia may increase oil prices in Asia in light of improved global demand. We are closing 10% of the trade at market price.

07/04/15 UPDATE: Brent crude oil is trading over 59.00 at the time of this writing. We are closing 20% of the long trade at market price.

Brent crude oil 4hr chart
Brent crude oil 4hr chart, 07/04/15

Brent crude oil 4hr chart, 07/04/15

 

16/04/15 UPDATE: Brent crude oil is trading at 62.90 at the time of this writing.

Brent Crude Oil Monthly Chart, 16/04/15

Please click on the chart to enlarge:

Brent crude oil monthly chart, 16 April, 2015

Brent crude oil monthly chart, 16 April, 2015

We are closing 25% of the long trade at market price and shift the protective stop to the entry. This trade alert is now unlocked and can be reviewed by all traders.

20/04/15 UPDATE: Brent crude oil continued to rise as expected, trading at 64.01 at the time of this writing.

Brent Crude Oil Weekly Chart, 20/04/15

Please click on the chart to enlarge:

Brent Crude Oil Weekly Chart, 20/04/15

Brent Crude Oil Weekly Chart, 20/04/15

We are closing the remaining of the long trade at market price. A decent profit was realized, as anticipated.

As Brent crude oil trade is closed it can  now be accessed by all traders. Open trades are restricted to members only. We have been providing trade alerts (signals) since May 2014, documenting all our trades on the website and summarize them in the ‘Trades Performance.’ Sign up for one of our plans to access our current and future trade alerts.
Brent Crude Oil: The Bearish Pressure
Brent Crude Oil: The Bearish Pressure
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Trade alerts are also issued in the weekly update.

Brent Crude Oil: The Bearish Pressure

                                             Brent Crude Oil: The Bearish Pressure

Brent Crude Oil: The Bearish Pressure