In our last forecast for 2014 we will take a look at brent oil prices short term perspectives. As the whole world already knows, oil prices have declined by nearly 60 dollars since their June peak at above $115. If you see it on a weekly chart, this sharp sell-off looks almost like a straight line. However, the smaller time frames will show you, that the larger downtrend has been interrupted quite often by relatively small corrections to the upside. It is very difficult to predict the exact bottom of this bear market, but the chart below suggest we should expect at least another temporary recovery.
It seems, that brent oil prices have drawn a triangle corrective pattern between 58.50 and 63.65. According to the Elliott Wave Principle, triangles precede the last wave of the larger sequence. We believe the last wave here is wave (5). It starts from the top of wave “e” of the triangle and has a perfect five-wave impulsive structure. If this is the correct count, we should prepare for a rebound, which should take the price of brent oil up to the $60 mark or even higher.
