BRENT CRUDE WEEKLY CHART - CONTINUATION:

Price earlier failed to hold above the 38.2% recovery level (which coincides with the Aug-06 high).

The structure of the chart and break of 23.6% pullback level suggested a more prolonged bear phase was unfolding.

The current strong bounce does not yet throw doubt on this analysis - now look closer...

BRENT CRUDE DAILY CHART - APR -10:

The stronger-than-expected rebound pushed above the 77.49 03-Feb high, which raised questions for the bears.

However, in the Commodity Specialist Guide we have been noting key resistance from a s/term bear channel top projection (now tested), ahead of the 80.00 76.4% bounce level - a clear close above this would confuse the outlook, and sideline previous bears.

At time of writing there remains the chance that the s/term recovery will lack staying power, but reversal must happen soon.