Brent a buy after hitting channel support?
Brent crude reached $52.80/barrel at the start of the month but has since seen a pullback. The low last week was 46.94/b and yesterday another test of this support level found buyers, but the thing that interested me more was yesterday's hold of the bottom line of a channel that I've had on my daily chart for a while now.
Management and risk description
The potential reward on this trade is circa $4-5 on half and $12-13 on the balance if we can reach the 60.95 retracement target, so approx $8-9 "net" profit potential.
Entry: buy half here (currently 47.90/b) and half on a dip to 47.35/b or a move through 48.30/b.
Stop: below 46.50/b initially
Targets: 52.80 and 60.90/b.
Time horizon: one week to two months.
Daily bar chart showing the channel I'm tracking; buyers returned here yesterday:
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— Edited by Michael McKenna