Looking to hop in retracements these days?
I’ve got a couple of break-and-retest setups you might wanna look at on these 4-hour charts!
Here are the pullback zones I’m watching on Brent crude oil and AUD/JPY:
Brent Crude Oil (UKOIL): 4-hour
Heads up, oil bears!
Brent crude oil has pulled back up to the former support zone around $94.25 per barrel, and it looks like downside pressure could return right here.According to the Stochastic indicator, buyers are looking pretty exhausted and might be willing to let sellers take over. At the same time, the 100 SMA is still below the 200 SMA to confirm that resistance levels are likely to hold.
If that’s the case, UKOIL could tumble back down to the swing low at $87.16 per barrel or lower.
A higher retracement could still reach the 50% Fibonacci retracement level that’s right in line with the dynamic resistance at the moving averages. The line in the sand for a bearish pullback would be at the 61.8% Fib at $98.67 per barrel.
This one just surged past the ceiling at the 96.00 major psychological mark and zoomed up to a high of 98.60!
Any chance to catch this strong rally at better prices?Using the handy-dandy Fib tool shows that the former resistance lines up with the 38.2% retracement level, which might be enough to hold as a floor.
A larger pullback could dip to the 50% Fib at the 94.50 minor psychological mark, which coincides with the 200 SMA dynamic inflection point.
The 100 SMA is safely above the 200 SMA to confirm that the uptrend is more likely to resume than to reverse. Stochastic is heading south, though, so AUD/JPY could keep following suit until oversold conditions are met.
Don’t forget to set those stop losses properly when trading these corrections!