FxWirePro Call Review: Brent crude likely to start forming support base below $55 per barrel

Global oil benchmark, North Sea Brent suffered quite a sharp selloff after reaching our interim target around $59 per barrel. Brent is down for sixth consecutive day today after declining from $59.5 and currently trading at $55.8 per barrel.

In an article published in late July, named, “FxWirePro: Buy Brent crude targeting $59 per barrel on Saudi export curb and Nigerian ceiling”, available at https://www.econotimes.com/FxWirePro-Buy-Brent-crude-targeting-59-per-barrel-on-Saudi-export-curb-and-Nigerian-ceiling-821113 we recommended buying Brent crude to our readers at the then current price of $50.7 and at dips around $49 and $48.5with an initial target around $59 per barrel and stop loss at $45 per barrel. In a subsequent article, we extended the target for the Brent to $65 per barrel.

While the call is still well in the money, it has declined quite rapidly after reaching our interim target. However, we remain positive on oil price outlook and expect Brent to form a support base between $54.5 and $55 area, before moving higher.