Brent Crude Oil Price Futures (BZ) Technical Analysis – In Position to Challenge Major Weekly Retracement Zone at $67.90 – $71.77

International-benchmark June crude oil finished higher last week while posting an inside move. The chart pattern indicates investor indecision and impending volatility. The market also close just slightly below the bottom of a key retracement zone. The market was supported by the highly successful OPEC-led production cuts and U.S. sanctions against Iran and Venezuela. All have combined to trim the excess global supply. Helping to keep a lid on prices are concerns over future demand due to a global economic slowdown.

Last week, June Brent crude oil settled at $67.58, up $0.83 or +1.23%.

Weekly Swing Chart Technical Analysis

The main trend is up according to the weekly swing chart. However, the closing price reversal top formed at $68.45 during the week-ending March 22 is helping to slow down the upside momentum.

A trade through $68.45 will negate the reversal top and signal a resumption of the uptrend. The main trend will actually change to down on a trade through $64.00.

The main range is $84.29 to $51.51. The market is currently bumping up against its retracement zone at $67.90 to $71.77. This zone is controlling the longer-term direction of the market.

The intermediate range is $51.51 to $68.45. If the trend changes to down then its retracement zone at $59.98 will become the next downside target.

The minor range is $64.00 to $68.45. Its 50% level or pivot is $66.23. This price is controlling the short-term direction of the market.

Weekly Swing Chart Technical Forecast

Based on last week’s close at $67.58, the direction of the June Brent crude oil market this week is likely to be determined by trader reaction to the main 50% level at $67.90.

Bullish Scenario

A sustained move over $67.90 will indicate the presence of buyers. Taking out $68.45 will signal a resumption of the uptrend. This could trigger an acceleration to the upside with the next major target the Fibonacci level at $71.77.

Bearish Scenario

A sustained move under $67.90 will signal the presence of sellers. The first target is the short-term pivot at $66.23. Taking out this level will indicate the selling is getting stronger. This could create the downside momentum needed to challenge the main bottom at $64.00.

The main trend will change to down on a trade through $64.00. This could trigger an acceleration to the downside with the next major target a retracement zone at $59.98 to $57.98.