Brent Crude Oil has been descending since April, 19 when it created a kind of Evening Star in the daily chart to dive from $75.60 to a $59.45 low made on June 05. Then it began a sinuous recovery to $67.65, that happened on July 11. After that it is moving in a descending channel, swinging up and down, but making a lower high and low, and now is at $58.4
Currently, the price has descended below the June’s low and is headed at what seems the lower trendline of the descending channel. We estimate that, in the absence of a news shock, a pullback to the nearby of the upper trendline is likely. That puts the potential target in the area of $61.2 to $62 level. To confirm this, we would like to see a daily close above $59.6, which is the open today and is above the last low made in June, as well.
Please remember that this is just a scenario, and to trade it, not only is needed entry and exit points, but also a stop loss and proper position sizing to manage risk.