IFC Markets - Analytics

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Technical Analysis #C-BRENT : 2015-05-04

Triangle breakout

Let us consider the BRENT continuous futures on the H4 chart. The price has breached the resistance at 67.31 and escaped the triangle, shaped by the resistance and H4 trend line. ParabolicSar has been confirming the trend. Donchian channel has turned towards the green zone: its lower boundary is located near the support line.

BRENT

Conservative traders are recommended to wait until the RSI-Bars breaches the support at 78%, confirming the bullish momentum. The oscillator has now been showing the ascending channel: the signal has been moving closer to the support line. However, the resistance breakout is likely to boost volatility and make the price cross 67.31 once again; a buy pending order may be placed at this mark. A stop loss may be placed below the latest fractal at 65.82: both Parabolic and H4 trend confirm this level. After pending order activation the stop loss is supposed to be moved every four hours, following Parabolic signals. Thus we are changing the probable profit/loss ratio to the breakeven point.

 

Position Buy
Buy stop above 67.31
Stop loss below 65.82


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