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Autochartist - Daily Commodities Update: Brent Crude Oil

Brent Crude Oil futures pushed through key level resistance to initiate what may become a major breakout from the recent trading range. Autochartist identified the move as a breakout above an Ascending Wedge chart pattern illustrated here on the longer term 240-minute time frame.

Brent Crude had been range-bound for the last several weeks, as the US Crude Oil futures gained ground to narrow Brent's premium to just over $10 per barrel. The momentum from the US market now appears to be catching up with the price of Brent, with today's upside breakout registering a maximum 10-bar breakout as measured by Autochartist.

The follow-through from the start of the rally has already carried the price to the minimum projected price of $110.98 per barrel, with no meaningful price retracement as of yet. The strength of the move implies a possible continuation to the top end of the forecast near $112.40 per barrel. If achieved, this could bring in momentum buyers as well as short-covering as stop-loss orders are triggered. The result may be a prolonged rally above the target area and towards the $120 per barrel mark.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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