Brent Crude Oil Price Futures (BZ) Technical Analysis – July 23, 2019 ForecastBased on the early price action and the current price at $63.27, the direction of the September Brent crude oil futures contract the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at $63.64 and the 50% level at $63.06.
International-benchmark Brent crude oil futures are trading nearly flat, underpinned by speculative buyers betting on a supply disruption in the Middle East. For a third consecutive session, the market remains inside last Thursday’s main range, which tends to suggest investor indecision and impending volatility. The catalyst behind the speculative buying is Iran’s seizure of a British tanker last week. Gains are being capped by demand concerns.
At 09:01 GMT, September Brent crude oil futures are trading $63.27, up $0.01 or +0.02%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through $61.29 will signal a resumption of the downtrend. A move through $67.64 will change the main trend to up.
The main range is $58.47 to $67.64. Its retracement zone at $63.06 to $61.97 is acting like support.
The short-term range is $67.64 to $61.29. Its 50% retracement level at $64.46 is the next potential upside target. This is followed by another 50% level at $65.04.
Daily Technical Forecast
Based on the early price action and the current price at $63.27, the direction of the September Brent crude oil futures contract the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at $63.64 and the 50% level at $63.06.
Taking out $63.64 and sustaining a rally over this angle will indicate the presence of buyers. If this move creates enough upside momentum then look for a rally into the short-term 50% level at $64.46. Overcoming this level will indicate the buying is getting stronger with the 50% level at $65.04 the next target.
The inability to overcome $63.64 will signal the presence of sellers. This could trigger a break under the 50% level under $63.06. If the selling pressure continues then look for the selling to possibly extend into the uptrending Gann angle at $62.60. This is a potential trigger point for an acceleration into the Fibonacci level at $61.97.
We’re in a news driven market so a move over $63.64 will give the market a slight upside bias, while a move under $63.06 will mean a resumption of the current downside bias.