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Has Brent Oil Peaked?
Yesterday, Brent Oil met its secondary upside target zone of $115.00, and has since pulled back a bit.
Let's notice that my 4-hour momentum gauge shows a glaring divergence at yesterday's high, which, if nothing else, is a near-term warning signal that the up-move off of the June 21st low at $88.49 (+30%) is complete, and that the likelihood of a significant correction is increasing.
That said, however, at this juncture, only a decline that breaks and sustains beneath the June-Aug support line, now at $109.20, will inflict meaningful technical damage.
Barring some sort of dangerous geopolitical flare-up, I will be expecting Brent Oil -- and the U.S. Oil Fund ETF (USO) along with it -- to weaken in the hours and days directly ahead.
