Brent Crude Oil Price Update – Short-Term Direction Controlled by Minor Pivot at $57.97

International-benchmark Brent crude oil finished slightly higher on Friday, but inside the previous day’s range. The price action tends to indicate investor indecision and impending volatility. Underpinning prices were a rise in U.S. equity markets as well as expectations of further stimulus by central banks, which helped ease worries over a global recession.

On Friday, December Brent crude oil settled at $57.67, up $0.33 or +0.57%.

Gains were capped after the Organization of the Petroleum Exporting Countries (OPEC) trimmed its global oil demand forecast in a downbeat outlook for the rest of 2019 as economic growth slows.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $55.29 will signal a resumption of the downtrend. The main trend will change to up on a move through $64.45. This is highly unlikely, however, since the market still has to overcome major retracement zone resistance.

The minor trend is also down. A trade through $60.65 will change the minor trend to up. This will also shift momentum to the upside.

The minor range is $55.29 to $60.65. Its 50% level or pivot at $57.97 was straddled every day last week.

The short-term range is $64.45 to $55.29. Its retracement zone at $59.87 to $60.95 is resistance. This zone stopped the rally at $60.65 on August 13.

The longer-term range is $52.19 to $71.87. Its retracement zone at $59.71 to $62.03 is controlling the near-term direction of the market. The short-term range falls inside this zone.

Daily Swing Chart Technical Forecast

Based on last week’s price action and the close at $57.67, the direction of the December Brent crude oil market on Monday is likely to be determined by trader reaction to the minor pivot at $57.97.

Bearish Scenario

A sustained move under $57.97 will indicate the presence of sellers. If this move is able to generate enough downside momentum then look for a possible retest of the minor bottom at $55.29. If this fails then over the near-term, the market could work its way into the December 26, 2018 main bottom at $52.19.

Bullish Scenario

A sustained move over $57.97 will signal the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the major Fibonacci level at $59.71. This is followed closely by the short-term 50% level at $59.87.

Overtaking $59.87 could trigger a further rally into the minor top at $60.65, followed by the short-term Fibonacci level at $60.95. This level is a potential trigger point for a surge into the major 50% level at $62.03.