The overnight rally has resulted in Brent crude completing an upward reversal / closing above key resistance, thereby generating a technical buy signal. The technical outlook has turned positive.The minimum upside technical price target is located at US$38.90 - the minimum expectation for a rally. As detailed in recent Wires(VIEW LINK), the stock technicals have led the related commodity given oil stock buy signals had been generated prior to the (brent) oil price.
Angela, how do technical signals hold up in such volatile markets?
Day to day movements won’t alter the trend after a signal is generated i.e Just as there is very specific criteria that needs to met to generate a technical signal, very specific criteria needs to be me to invalidate a signal. In the case of brent, a downside break of a key support level would be required to negate the current buy signal.