In the H4 chart, after breaking the high at 71.07, Brent was growing towards the post-correctional extension area between 138.2% and 161.8% fibo at 72.05 and 73.33 respectively. However, this movement was followed by a divergence on MACD, which made the price start a new correction to the downside. If the instrument breaks the fractal support at 64.50, it may continue falling to reach 60.46.
The H1 chart shows a more detailed structure of the current correction. The correctional targets may be 23.6%, 38.2%, 50.0%, and 61.8% fibo at 70.71, 69.52, 68.57, and 67.60 respectively. The local resistance is the high at 72.63.
As we can see in the H4 chart, the situation hasn’t changed much over the last week. After breaking 76.0% fibo and attempting to reach the high at 35102.0 twice, Dow Jones hasn’t been successful in breaking it. If the price finally succeeds, it may continue growing towards the post-correctional extension area between 138.2% and 161.8% fibo at 35786.0 and 36210.0 respectively. However, an alternative scenario implies a rebound from the high and a new mid-term correctional downtrend to break the low at 33295.0 and then mid-term 23.6% and 38.2% fibo at 32970.0 and 31651.0 respectively.
The H1 chart shows potential downside targets after a local divergence on MACD and double test of the high at 34858.0. At the moment, the index is testing 23.6% fibo. The next downside targets may be 38.2%, 50.0%, 61.8%, and 76.0% fibo at 34260.0, 34076.0, 33893.0, and 33670.0 respectively. A breakout of the current high will complete the correction.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.