Fibonacci Retracements Analysis 01.04.2021 (Brent, Dow Jones)

Brent

In the daily chart, the situation hasn’t changed much as the asset is still forming its descending correction after testing the long-term 76.0% fibo and a divergence on MACD. Right now, the price is moving close to its first target, 23.6% fibo at 58.00, and trading as if it can’t decide whether to continue falling or not. The next downside targets might be 38.2%, 50.0%, and 61.8% fibo at 49.94, 43.46, and 36.93 respectively. A breakout of the high at 71.07 may complete the correction and lead to a further uptrend to reach the fractal high at 87.09.

The H1 chart shows a more detailed structure of the current short-term correction after a convergence on MACD, which, after reaching 38.2% fibo, was followed by a local divergence and a new decline towards 23.6% fibo. If the descending impulse breaks the low at 60.46, it may continue moving towards the mid-term target. Otherwise, the asset may continue the correction to reach 50.0% and 61.8% fibo at 65.76 and 67.02 respectively.

Dow Jones

The H4 chart shows that the Dow Jones index has hit a new high at 33273.0. In this case, the scenario that implies a further uptrend towards the post-correctional extension area between 138.2% and 161.8% fibo at 33910.0 and 36620.0 respectively seems more probable. At the same time, there is divergence on MACD, which may indicate a new pullback to the downside to reach 23.6%, 38.2%, and 50.0% fibo at 31569.0, 30518.8, and 29670.6 respectively.

As we can see in the H1 chart, after finishing the ascending impulse, the asset is correcting downwards and has already reached 23.6% fibo. The next correctional targets are 38.2%, 50.0%, and 61.8% fibo at 32820.0, 32682.0, and 32544.0 respectively. The key support is at 32092.0, while the resistance is the high at 33273.0.