Brent Crude Oil Price Update – Strengthens Over $61.81, Weakens Under $60.27

International-benchmark Brent crude oil fell on Friday, nearly filling in the gap on the daily chart left by the attack on the Saudi oil facilities on September 14. Prices slid after Iranian President Hassan Rouhani claimed that the U.S. offered to remove all sanctions on Iran in exchange for negotiations. The market rebounded from its low after President Donald Trump and the State Department later denied those claims, however, this wasn’t enough to turn the market higher for the session.

On Friday, December Brent crude oil settled at $61.04, down $0.70 or -1.15%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through $58.09 will change the main trend to down. A move through $68.32 will signal a resumption of the uptrend.

The minor trend is down. This is controlling the downside momentum. The minor trend will change to up on a trade through $61.91. This will shift momentum to the upside.

The main range is $55.29 to $68.32. Its retracement zone at $61.81 to $60.27 is potential support. Traders straddled this zone for three sessions last week, suggesting buyers may be trying to form a support base.

On the upside, the retracement zone resistance is $63.58 to $65.54.

Daily Swing Chart Technical Forecast

With the main trend up, buyers could come in on the test of the retracement zone at $61.81 to $60.27 in an effort to form a secondary higher bottom.

Based on the uptrend and Friday’s close at $61.04, the direction of the December Brent crude oil futures contract on Monday is likely to be determined by trader reaction to the 50% level at $61.81.

Bullish Scenario

A sustained move over $61.81 will indicate the presence of buyers. Taking out $61.91 will change the minor trend to up and shift momentum to the upside. If this is able to create enough upside momentum then look for a potential surge into the next 50% level at $63.58.

Bearish Scenario

A sustained move under $61.81 will signal the presence of counter-trend sellers. This could trigger a break into the Fibonacci level at $60.27, followed closely by Friday’s low at $59.83.

The low at $59.83 is a potential trigger point for an acceleration to the downside since the daily chart indicates there is no support until the $58.09 main bottom.