Brent Crude Oil Price Update – Strengthens Over $66.59, Weakens Under $66.48

International-benchmark Brent crude oil futures edged higher on Friday, but the market was primarily rangebound as bullish speculators assessed the impact of Tropical Storm Barry on production, while a bearish report on future demand from the International Energy Agency (IEA) kept a lid on prices. Prices also continued to be supported by simmering tensions in the Middle East.

On Friday, September Brent crude oil futures settled at $66.72, up $0.20 or +0.30%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum may be getting ready to shift to the downside with the formation of the potentially bearish closing price reversal top on July 11 at $67.64.

A trade through $67.64 will negate the closing price reversal top and signal a resumption of the uptrend. There’s not much resistance until the main top at $71.61.

A trade through $66.44 will confirm the closing price reversal top. This will shift momentum to the downside. The main trend will change to down on a trade through $62.07.

For nearly three weeks, the market has been manipulated by a pair of retracement zones. We’re likely to see choppy two-sided price action until buyers or sellers clear this area.

The main range is $73.35 to $58.47. Its retracement zone is $65.91 to $67.67. The upper or Fibonacci level stopped the rally last week.

The intermediate range is $71.61 to $58.47. Its retracement zone at $66.59 to $65.04 is potential support.

Daily Technical Forecast

Based on Friday’s price action and the close at $66.72, the direction of the September Brent crude oil market on Monday is likely to be determined by trader reaction to the Fibonacci level at $66.59 and the downtrending Gann angle at $66.48.

Bullish Scenario

A sustained move over $66.59 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into $67.64 and $67.67.

Taking out $67.67 will indicate the buying is getting stronger with the next target angle coming in at $69.07. Crossing to the strong side of this angle will put the market in a bullish position with $69.91 the next target angle.

Bearish Scenario

A sustained move under $66.48 will signal the presence of sellers. This could trigger an acceleration into the main 50% level at $65.91. If this fails then prices could plunge into a potential support cluster at $65.57 to $65.04.

Overview

Keep an eye on the 200-Day Moving Average at $66.62. Trader reaction to this level could set the tone for the day.