Fibonacci Retracements Analysis 13.05.2021 (Brent, Dow Jones)

Brent

In the H4 chart, after failing to reach the high at 71.07, Brent has stopped growing at 76.0% fibo; right now, it is consolidating between the high and 61.8% fibo. Possibly, the asset may break the range to the upside and break the high as well. After that, the instrument may continue growing towards the post-correctional extension area between 138.2% and 161.8% fibo at 75.12 and 77.60 respectively, and then the fractal high at 87.09. At the same time, another scenario implies a rebound from the high followed by a new descending wave to break the low at 60.46 and then reach 23.6%, 38.2%, 50.0%, and 61.8% fibo at 58.00, 49.94, 43.46, and 36.93 respectively.

The H1 chart shows that a local divergence on MACD made the asset start a new correctional decline, which has already reached 23.6% fibo and may later continue towards 38.2%, 50.0%, and 61.8% fibo at 66.22, 65.12, and 64.03 respectively. The resistance is the high at 69.78, a breakout of which may lead to a further uptrend towards 76.0% fibo and the high at 69.97 and 71.07 respectively.

 Dow Jones

As we can see in the daily chart, Dow Jones has been updating its local lows for several trading sessions in a row. It started after a divergence when the price was moving inside the post-correctional extension area between 138.2% and 161.8% fibo at 33941.0 and 36620.0 respectively. The key resistance is the high at 35102.0. The current situation may hint at a possible reversal of the long-term trend. If it happens, the downside target may be 23.6%, 38.2%, 50.0%, and 61.8% fibo at 31100.0, 28632.0, 26620.0, and 24657.0 respectively. The key target is the low at 18186.0.

The H1 chart shows the descending correction, which has already broken 23.6% fibo and is now approaching 38.2% fibo at 33365.0. The next downside target is 50.0% fibo at 32829.0. After reaching it, the price may start a new pullback.