Brent Crude’s Triangle Breakout
Oil Jumps as US Military Base in Jordan Attacked
The Middle East powder keg came into sharp focus again this weekend following a drone attack by Iran-backed militants on a US military base in Jordan. President Joe Biden reported three service members were killed in the attack.
These casualties mark the first time US troops have been killed in an attack in the Middle East since the Israel-Hamas war began in Gaza in October. In response to the incident, Brent crude, the international oil benchmark, gapped higher in early trading but has since given back the gains.
While escalating tensions in the Middle East provide a supportive backdrop for oil, this month has also witnessed headwinds. Saudi Arabia's unexpected price cuts and the International Energy Agency (IEA) projecting a significant slowdown in oil demand growth for 2024 have added pressure to the market.
Building Bullish Momentum on Brent Crude's Daily Candle Chart
After more than a month of tight consolidation, the market for Brent Crude has finally showed its hand…
Prices had been winding ever tighter within a triangle consolidation pattern, but last week’s price action saw the market break decisively above it – creating a burst of bullish momentum. The breakout takes prices above the volume-weighted average price (VWAP) anchored to the September 2023 highs for the first time since October.
The market now faces a critical level of horizontal resistance (black dashed line), previously rejected twice in November. A successful breach of this level could pave the way for a more robust bullish trend in Brent crude.
Brent Crude Daily Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84.01% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
The Middle East powder keg came into sharp focus again this weekend following a drone attack by Iran-backed militants on a US military base in Jordan. President Joe Biden reported three service members were killed in the attack.
These casualties mark the first time US troops have been killed in an attack in the Middle East since the Israel-Hamas war began in Gaza in October. In response to the incident, Brent crude, the international oil benchmark, gapped higher in early trading but has since given back the gains.
While escalating tensions in the Middle East provide a supportive backdrop for oil, this month has also witnessed headwinds. Saudi Arabia's unexpected price cuts and the International Energy Agency (IEA) projecting a significant slowdown in oil demand growth for 2024 have added pressure to the market.
Building Bullish Momentum on Brent Crude's Daily Candle Chart
After more than a month of tight consolidation, the market for Brent Crude has finally showed its hand…
Prices had been winding ever tighter within a triangle consolidation pattern, but last week’s price action saw the market break decisively above it – creating a burst of bullish momentum. The breakout takes prices above the volume-weighted average price (VWAP) anchored to the September 2023 highs for the first time since October.
The market now faces a critical level of horizontal resistance (black dashed line), previously rejected twice in November. A successful breach of this level could pave the way for a more robust bullish trend in Brent crude.
Brent Crude Daily Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84.01% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.