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FxWirePro Call Review: Brent defies short-term correction outlook over Iran protests; maintain long positions targeting $75 per barrel

In an article published last 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, named, “FxWirePro Call Review: Brent crude target extended from $59 to $65 per barrel”, available at http://www.econotimes.com/FxWirePro-Call-Review-Brent-crude-target-extended-from-59-to-65-per-barrel-914475 we noted, “The call is currently $5.7 per barrel in the money from the first call price and we remain optimistic about reaching the target. We can note that since our call in July, the Brent crude market has dipped further into backwardation, indicating higher supply crunch in the cash market” and extended the target for Brent to $65 per barrel with 50 percent profit booking advice at the interim target of $59.

Brent reached our initial target and declined over profit booking. In our next article, available at http://www.econotimes.com/FxWirePro-Call-Review-Brent-crude-likely-to-start-forming-support-base-below-55-per-barrel-930858 we urged our readers to continue the bull call expecting Brent to form support base around $55 per barrel area.

As anticipated, Brent had taken the support of the region and in October, and we extended the target for Brent from $65 per barrel to $68 per barrel in a subsequent article. We also suggested interim profit bookings at $65 per barrel.

However, in our last article, published in mid-December, we suggested that a correction could be coming which would push the global benchmark towards $58 per barrel before it moves higher. But that hasn’t taken place, thanks to the ongoing crisis in the Middle East and protests in Iran that began last week. Geopolitical tensions have once again put Brent on the bullish course and we are positive that our target of $68 would be reached soon.

In this article, we would like to extend our bullish target from $68 per barrel to $75 per barrel. However, we still strongly feel that a correction is becoming overdue, which would make this bull trend a more healthy one.

 

 

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