Bullish sentiment has been dominating the BRENT.CMD/USD since the end of December. The commodity reversed from the lower boundary of a dominant descending channel pattern at 50.31 on December 26 and followed by an upside wave.
The Brent crude oil breached the upper boundary of the dominant ascending channel at 58.49 during yesterday’s session.
Given that a breakout had occurred, it is likely that the crude oil prices will continue moving north and potentially targeting a resistance cluster formed by the combination of the weekly and the monthly PPs at 61.90.
The Brent crude oil breached the upper boundary of the dominant ascending channel at 58.49 during yesterday’s session.
Given that a breakout had occurred, it is likely that the crude oil prices will continue moving north and potentially targeting a resistance cluster formed by the combination of the weekly and the monthly PPs at 61.90.
Note
The UKOIL has been trading in a narrow ascending channel against the US Dollar. The commodity price tested the upper boundary of the channel pattern at 62.39 on January 11 and subsequently made a pullback south.The BRENT.CMD/USD pair was trading below a traditional weekly pivot point level at 61.71 during the morning hours of Thursday’s trading session.
If the Brent crude oil passes the weekly PP as mentioned earlier, there could be a potential upside breakout during the following trading sessions.
However, if the resistance level holds, it is likely that the pair edges lower toward the weekly S1 at the 57.68 area today.
Note
The Brent crude oil has continued to appreciate in a junior ascending channel pattern against the US Dollar. The pair has been guided up by the 100-hour simple moving average.
The Brent.CMD/USD pair was trading a resistance cluster at 61.65 during the Asian session on Wednesday.
If the resistance line as mentioned above holds, a potential pullback towards a support cluster at 58.72 could follow.
However, if the UKOIL breaches the resistance cluster at 61.65, the next target for bullish traders will be near a swing high of 63.06.
Note
The BRENT.CMD/USD pair has appreciated about 4.92% of its values during the past week. The commodity tested a swing high of 63.61 during this time period. The Brent crude oil is currently facing a strong support level formed by the weekly pivot point and the combination of the 50– and 100-hour SMAs at the 61.80 area.
If this support cluster as mentioned above holds, the oil prices could edge higher towards a resistance level at the 66.00 mark in the nearest future.
However, if the UKOIL passes the SMAs, a decline towards a support level set by the monthly PP at 58.96 could be expected.
Note
The Brent crude oil prices rose by 4.46% during the last one week. The pair breached both the 50– and 100-hour simple moving averages during this short period of time.
Currently, the BRENT.CMD/USD pair is trading near a resistance level at 63.65. From a theoretical point of view, a pull-back is likely to occur within this trading session.
However, technical indicators flash bullish signals on both the smaller and the larger time frames.
The short-term target for the oil prices will be at a swing high of 63.65.
Note
The UKOIL has appreciated about 6.29% in values against the US Dollar during the last week. The pair reached November 20 high level at 66.82 within this short period of time. During the past 72 hours of trading, the commodity price has been moving sideways.
Everything being equal, it is likely that the BRENT.CMD/USD pair will continue to gain strength in the coming week.
Although, a pull-back towards a support level formed by the weekly pivot point at 64.57 could be expected today.
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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.