Brent Crude Oil Price Update – Strengthens Over $62.93, Weakens Under $60.32

Based on last week’s price action and the close at $62.01, the direction of the August Brent crude oil futures contract on Monday is likely to be determined by trader reaction to the 50% level at $62.93 and the 61.8% level at $60.32. Holding inside this zone will be another sign of trader indecision. Given this week’s events, the next move is likely to be news driven. Traders seemed to have absorbed the bearish forecasts from the EIA and IEA so we’ll be looking for something affecting the supply side.
James Hyerczyk
Brent Crude Oil
Brent Crude Oil

International-Benchmark Brent crude oil futures finished higher on Friday, but remained inside the previous session’s wide range. This tends to indicate investor indecision and impending volatility.

Tensions remained high following Thursday’s attack on two oil tankers in the Gulf of Oman, however, without an actual supply disruption, gains were limited. Continuing to keep the pressure on prices is rising U.S. stockpiles and concerns over lower future demand due to the global economic slowdown.

On Friday, August Brent crude oil futures settled at $62.01, up $0.70 or +1.13%.

Daily August Brent Crude Oil

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, but the developing double-bottom formation suggests the presence of buyers. A trade through $64.13 will change the main trend to up. A move through $59.45 will signal a resumption of the downtrend.

The main range is $51.90 to $73.95. Its retracement zone at $62.93 to $60.32 is controlling the near-term direction of the market. On Friday, the market closed inside this zone, suggesting a support base may be forming.

The short-term range is $72.41 to $59.45. If the trend changes to up then its 50% level at $65.93 will become the primary upside target. This is followed by a major 50% level at $67.60.

Daily Swing Chart Technical Forecast

Based on last week’s price action and the close at $62.01, the direction of the August Brent crude oil futures contract on Monday is likely to be determined by trader reaction to the 50% level at $62.93 and the 61.8% level at $60.32. Holding inside this zone will be another sign of trader indecision.

Bullish Scenario

Taking out $62.93 will indicate the presence of buyers. If this move generates enough upside momentum then look for the rally to possibly extend into the main top at $64.13. Taking out this main top will change the main trend to up. This could trigger a surge into the 50% level at $65.93.

Bearish Scenario

The inability to overtake $62.93 will signal the presence of sellers. Taking out $60.32 will indicate the selling is getting stronger. This could lead to an acceleration to the downside if $59.57 and $59.45 are taken out. The daily chart is wide open to the downside with the next major downside target the December 24 main bottom at $51.90.

Overview

Holding inside the retracement zone at $62.93 to $59.45 indicates something big may be developing. Given this week’s events, the next move is likely to be news driven. Traders seemed to have absorbed the bearish forecasts from the EIA and IEA so we’ll be looking for something affecting the supply side.

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
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