This is the June 2019 contract which topped out on February 22 at the $67.60 price level. Brent crude never made it to the 200-day MA where we normally would expect resistance. Brent is also on a little rally as I’m posting, so the entire expanded pattern is not written in stone just yet. Even if another leg up is goning to take Brent to new record highs I would like to see a deeper correction develop. That could take Brent down to the 50-day, MA at about the $60 price level.
Brent is still under the effect of a Death Cross and any Golden Cross is still nowhere to be seen. The Gold/Brent ratio is at 20.30:1 which is much better, but getting back up to the 17:1 range we used to have. The commercial hedgers positions are too close to being neutral, so they will just give us false readings at this time.
At this time there may not be anymore updates until next month.