Elliott wave analysis of Brent Crude Oil for April 21 - 2020

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Brent Crude Oil is now in its final stages of a huge ending diagonal and it's just a matter of time before a long-term bottom is in place. Over night we saw Crude Oil spike to an unbelievable low of USD -37.5 pr. barrel. It is a financially crazy world we are living in. We see negative interest rates and now negative commodity prices...

The risk of a similar drop lower in Brent crude oil is highly probable. Therefore, we recommend staying cautious. A break above minor resistance at 29.38 will be a good indication that a long-term low is in place and a rally to at least 70 is in motion.

Trading recommendation:

It is better to take a wait-and see approach as the oil price may plunge to extreme low. However, a break above 29.38 will indicate that a long-term low is in place and we can bet on rally towards 70.00.

The material has been provided by InstaForex Company - www.instaforex.com