Brent crude continues to consolidate below resistance at $125/$126 per barrel. Upward breakout would signal a primary advance with a long-term target of $150*. Reversal below $122 is less likely but would warn of a correction to test support at $115.
* Target calculation: 125 + ( 125 – 100 ) = 150
The broader CRB Commodities Index is undergoing a correction. Breach of the rising trendline would indicate that the long-term up-trend is weakening. And failure of primary support at 295 would signal a decline to 265*. Respect of the zero line by 63-day Twiggs Momentum (from below) warns of continuation of the primary down-trend.
* Target calculation: 295 – ( 325 – 295 ) = 265
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