$XBRUSD

Looking at the XBRUSD (Brent Crude) 1-hour chart, the market structure has clearly shifted from a bearish downtrend to a bullish reversal structure. Price successfully bottomed out at 93.74 and has since established a series of higher highs and higher lows. The K-line analysis shows strong bullish momentum, with the price action currently riding above the WMA5 (98.51), WMA10 (98.33), and WMA20 (98.02), while the Bollinger Bands have expanded upward, confirming the volatility and trend direction. The MACD is well into positive territory (DIF 0.78, DEA 0.75), though the histogram is flattening, suggesting a brief consolidation phase. Furthermore, the TRIX and BRAR indicators are trending upward, supporting the continued bullish sentiment.

Recently, we observed a series of strong bullish engulfing and consecutive green candles pushing the price from the 95.00 region up to the 99.18 high. Currently, the price is consolidating near 98.32, forming small-bodied candles. This resembles a Bullish Harami or a high-tight flag pattern, indicating a pause in the uptrend before a potential continuation. There is no strong bearish rejection candle yet, meaning the buyers are still in control.

For this current time, a Gartley pattern or a Bullish Flag/Continuation setup is far better than a Head and Shoulders. A Head and Shoulders is a reversal pattern, which contradicts the current strong bullish momentum. Instead, a Gartley (or a simple Fibonacci retracement bounce) would suggest waiting for a pullback to the 0.618 or 0.786 level (roughly between 97.50 and 97.80, near the WMA20 support) to go long. My prediction is that after this short consolidation at 98.32, the price will likely retest the 99.18 resistance and potentially push toward the psychological 100.00 level.

What Trade Plan I Follow and Why & When I Start My Trade❓️

I will follow a Trend-Continuation (Buy the Dip) trade plan. I choose this because the 1-hour trend is strongly bullish, and the moving averages are providing dynamic support. I will not enter a trade right now at 98.32 because the MACD histogram is showing a loss of immediate momentum, risking a short-term pullback.

I will start my trade when the price retraces to the 97.50 - 97.80 zone (near the WMA20 and middle Bollinger Band). I will wait for a bullish reversal candlestick (like a hammer or a bullish engulfing) in that zone to confirm support. Alternatively, if the price breaks and closes firmly above 99.18 with strong volume, I will enter a breakout long trade.

The overall bias is BULLISH. The market has shifted structure, and indicators align with the buyers. Do not short this market. Wait patiently for a pullback to the 97.50–98.00 support zone to execute a long position, targeting 99.18 and then 100.00, while placing a strict stop-loss below the recent swing low of 97.40.#USOctoberPPIComingSoon