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Brent Crude Oil Price Update – Needs to Hold $60.90 to Sustain Upside Momentum

By:
James Hyerczyk
Published: Oct 30, 2019, 04:10 UTC

Based on Tuesday’s price action and the current price at $61.40, the direction of the December Brent crude oil futures contract on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at $60.90. This angle stopped the selling on Tuesday.

Brent Crude Oil

International-benchmark Brent crude oil futures are trading slightly lower early Wednesday after the release of an industry report that showed a smaller-than-expected build in crude oil inventories. Prices were down on Tuesday after conflicting reports that Saudi Arabia is will to cut deeper at the December OPEC meeting, while Russia continues to suggest indirectly that it might not be interested in doing more.

At 03:48 GMT, December Brent crude oil is trading $61.40, down $0.19 or -0.31%.

Brent Crude Oil
Daily December Brent Crude Oil

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside with the formation of the closing price reversal top on Monday and its subsequent confirmation in yesterday’s session. The chart pattern doesn’t indicate a change in trend, but it may lead to the start of a 2 to 3 day correction.

A trade through $62.34 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a trade through the last main bottom at $58.00.

The minor trend is also up. A trade through $58.26 will change the minor trend to down and signal a shift in momentum to the downside.

The main range is $68.32 to $56.15. Its retracement zone at $62.24 to $63.67 is resistance. This zone stopped the rally at $62.34 on Monday.

The short-term range is $56.15 to $62.34. Its retracement zone at $59.25 to $58.51 is the next downside target area.

Daily Technical Forecast

Based on Tuesday’s price action and the current price at $61.40, the direction of the December Brent crude oil futures contract on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at $60.90. This angle stopped the selling on Tuesday.

Bullish Scenario

A sustained move over $60.90 will indicate the presence of buyers. If this creates enough upside momentum then look for a potential rally into the main 50% level at $62.24, followed closely by this week’s high at $62.34. This is a potential trigger point for an acceleration to the upside with the Fibonacci level at $63.67 the primary upside target.

Bearish Scenario

A sustained move under $60.90 will signal the presence of sellers. This could trigger a break into the downtrending Gann angle at $60.32. Crossing to the weak side of this angle indicates the selling pressure is increasing. This could extend the break into the short-term retracement zone at $59.25 to $58.51.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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