Brent Crude Oil Price Futures (BZ) Technical Analysis – July 26, 2019 Forecast

International-benchmark Brent crude oil futures are inching higher early Friday on low volume with concerns over slow global economic growth outweighing worries about Middle East tensions.

While anxieties over potential supply disruptions continue to draw the attention of speculative buyers, most traders agree that gains will continue to be limited unless a shutdown in the region leads to a prolonged supply disruption.

At 07:48 GMT, September Brent crude oil futures are trading $63.43, up $0.04 or +0.06%.

Daily Swing Chart 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. This could lead to the start of a steep drop. The main trend will change to up on a trade through $67.64.

The minor trend is also down. A trade through $64.66 will change the minor trend to up. This will also shift momentum to the upside.

The short-term ranger is $58.47 to $67.64. Its retracement zone at $63.06 to $61.97 is support. The market has been trading on the strong side of its 50% level at $63.06 all week.

The main range is $71.61 to $58.47. Its retracement zone at $65.04 to $66.59 is resistance. This zone also overlaps the major 50% level at $65.91, creating a solid wall of resistance.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September Brent crude oil market on Friday is likely to be determined by trader reaction to the short-term 50% level at $63.06.

Bullish Scenario

A sustained move over $63.06 will indicate the presence of buyers. If this creates enough upside momentum then we could see a retest of this week’s high at $64.66, followed closely by the main 50% level at $65.04.

Bearish Scenario

A sustained move under $63.06 will signal the presence of sellers. This could trigger the start of an acceleration into the short-term Fibonacci level at $61.97, followed closely by last week’s low at $61.29.

Overview

The market is in a position to finish the week higher, but inside the previous week’s range. This indicates investor indecision and impending volatility.