Trend: Up, but overbought in the short term. Strategy: Buy on a pullback towards US$63,50. Brent crude broke out of a large falling wedge (lines 1 and 2) in February. It’s been moving up steadily. Recently it also broke out above line 3 to confirm an inverse head and shoulders pattern (as labelled). That’s a bullish pattern. There are therefore two bullish patterns now in place. However, the daily RSI is in the overbought region, which implies a short-term pullback to come. • Use a pullback in price towards US$63,50 (spot price) to buy Brent crude (via the futures market). Target 1 is $68, which has just been reached, while target 2 is at $76,40, which will re-test Brent’s all-time high from August 2006. Place your initial stop-loss when buying on a pullback as a closing price below $60 (spot price).