The bears are back and, looking at the weekly and daily structure, suspect the corrective high is in a $68.
News that the US had ‘destroyed’ an Iranian drone saw Brent rally 2% during the Asia session, yet we’re far convinced this will be enough to turn the tide of bearish views. Due to slower global growth (with a dim picture coming from leading indicators) the International Energy Agency (IEA) is lowering its demand forecasts for oil as the trade war heats up. And traders are reported to be removing options trades which would have protected them from higher prices.
Moreover, price action on Brent looks increasingly bearish as we drill through the timeframes, and it looks like a significant high is in a $68.
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