BRENT OIL (UKOIL): Bullish run expected for the following months
1) Since lows seen at the beginning of 2016 until now we have seen UKOIL -0.14% forming an inverted Head and Shoulders pattern which has been broken upwards recently (weekly chart).
2) Fibonacci levels since May 2015 to Jan 2016 have been touched repeatedly, and acting as supports and resistances so far, specially 38.2% (at 43.3 usd/bbl) and 61.8% (at 53.3 usd/bbl). This ensures the accuracy of these Fibos and its projections, which match with longer terms fibos.
3) A down trendline is coming from the peak in 2008 and hereafter, this should become a strong resistance when price reaches its levels.
All these three factors converge in a perfect storm, coming in march-april 2018, which could lead us to see UKOIL -0.14% in 95-97 usd/bbl zone. The H&S figure has its target in this level, the 1.618 fibo projection also goes here and the trendline is also expected to cross that zone by Q1 2018.
Three confirmation facts which give this possible scenario high chances to become true.
2) Fibonacci levels since May 2015 to Jan 2016 have been touched repeatedly, and acting as supports and resistances so far, specially 38.2% (at 43.3 usd/bbl) and 61.8% (at 53.3 usd/bbl). This ensures the accuracy of these Fibos and its projections, which match with longer terms fibos.
3) A down trendline is coming from the peak in 2008 and hereafter, this should become a strong resistance when price reaches its levels.
All these three factors converge in a perfect storm, coming in march-april 2018, which could lead us to see UKOIL -0.14% in 95-97 usd/bbl zone. The H&S figure has its target in this level, the 1.618 fibo projection also goes here and the trendline is also expected to cross that zone by Q1 2018.
Three confirmation facts which give this possible scenario high chances to become true.