Brent rebounding post IEA report

Brent Crude is extending yesterday’s gains and partially recouping the losses witnessed from late December 2013 through to mid-January 2014. 

The move follows a positive report released by the International Energy Agency (IEA) on the outlook of demand for oil, which adds to the optimism created by the recent IMF forecast of an improved expectation for global growth. 

The chart below highlights a possible “rounded bottom” reversal pattern on the price of Brent Crude. The pattern is considered a reversal pattern as it warns of the preceding trend (which in this scenario is down) being reversed. Should the short term rebound continue and manage to close above horizontal resistance at 10775, the chart formation favours a move towards resistance at 11100.

Brent Crude 22012014

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