Brent Crude Correction May Slash Half of Price Due to Complex Chart Structure

Brent Crude oil futures have recently undergone a complex correction in their chart structure. According to an analysis, this correction may slash half of the price due to its potential implications.

The current chart structure implies a W-X-Y Double Three correction, which is similar to one posted in June with the same target in place. This means that the recent drop might hit the $51 target where wave Y equals wave W.

A bearish confirmation for this scenario comes from the breakdown of the previous valley below $78. Additionally, the Relative Strength Index (RSI) needs to break down below 50 'waterline' to confirm the bearish trend.