Brent Crude Oil Price Update – 50% Level at $59.87 Controlling Direction

Based on this week’s price action, the direction of the December Brent crude oil futures contract on Friday is likely to be determined by trader reaction to the intermediate 50% level at $59.87.
James Hyerczyk
Crude Oil

International-benchmark Brent crude oil futures are inching higher early Friday on low volume after plunging the previous session on fears of a global recession and uncertainty over Fed monetary policy.

Crude oil prices turned south on Thursday after a flash report showed the first contraction in the manufacturing sector in nearly a decade and after Philadelphia Federal Reserve Bank President Patrick Harker said that he does not see the case for additional stimulus.

At 03:14 GMT, December Brent crude oil is trading $59.02, up $0.07 or +0.12%.

 

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $64.45 will change the main trend to up. A move through $55.29 will signal a resumption of the downtrend.

The minor trend is also down. A trade through $60.34 will change the minor trend to up, and a move through $60.65 will shift momentum to the upside.

The main range is $66.50 to $55.29. Its retracement zone at $60.90 to $62.22 is resistance. This zone stopped the rally at $60.65 on August 13.

The intermediate range is $64.45 to $55.29. Its retracement zone at $59.87 to 60.95 is also resistance. This zone stopped the rally at $60.34 on August 20.

The short-term range is $55.29 to $60.65. Its retracement zone at $57.82 to $57.22 has provided support since August 9.

Daily Swing Chart Technical Forecast

Based on this week’s price action, the direction of the December Brent crude oil futures contract on Friday is likely to be determined by trader reaction to the intermediate 50% level at $59.87.

Bearish Scenario

A sustained move under $59.87 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possible extend into the short-term retracement zone at $57.82 to $57.22. If this zone fails as support then look for an acceleration to the downside.

Bullish Scenario

A sustained move over $59.87 will signal the presence of buyers. The first targets are lined up at $60.34, $60.65 and $60.90. The latter is the trigger point for an acceleration into the main Fibonacci level at $62.22. This is another potential trigger point for an acceleration to the upside.

Overview

Look for volatility to hit at 14:00 GMT when Fed Chairman Jerome Powell begins his speech at Jackson Hole, Wyoming. Actually, you should start watching earlier than that since a transcript of the speech may be released earlier in the trading session.

If Powell indicates the Fed is going to be aggressive in attempting to perk up the economy and prevent a recession, then crude oil prices could soar. If Powell isn’t clear as to the next moves by the Fed then crude oil prices could plunge. Powell has to deliver the speech with clarity and conviction.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US