BRENT.CMD/USD 4H Chart: Potential decline likely
The Brent crude oil has been depreciating since the beginning of October after the commodity reversed from a three-year high level at 86.66.
The Brent.CMD/USD crude oil price was trading near a resistance cluster formed by the combination of the 50-hour simple moving average and the traditional weekly pivot point at 61.79 during the morning hours of Friday’s trading session. Technical indicators are in favour of a decline within this session.
If the resistance level as mentioned above holds, a breakout through the lower boundary of the given channel pattern is likely to occur in the nearest future.
The possible downside target will be the psychological support level at 55.00.
The Brent.CMD/USD crude oil price was trading near a resistance cluster formed by the combination of the 50-hour simple moving average and the traditional weekly pivot point at 61.79 during the morning hours of Friday’s trading session. Technical indicators are in favour of a decline within this session.
If the resistance level as mentioned above holds, a breakout through the lower boundary of the given channel pattern is likely to occur in the nearest future.
The possible downside target will be the psychological support level at 55.00.
Comment:
The BRENT.CMD/USD has depreciated more than 890 base points since December 17. This decline was stopped by a support level formed by the weekly S1 at 50.43.
The UK crude oil regained about 10.18% of its lost values during Wednesday’s trading session. Currently, the pair is trading near a resistance cluster formed by the weekly PP and the 50-hour simple moving average at 55.81.
If this resistance cluster holds, the commodity will continue to edge lower within this session.
However, if the price passes the 50-hour SMA, the next target for the crude oil price will be at the 58.00 mark.
The UK crude oil regained about 10.18% of its lost values during Wednesday’s trading session. Currently, the pair is trading near a resistance cluster formed by the weekly PP and the 50-hour simple moving average at 55.81.
If this resistance cluster holds, the commodity will continue to edge lower within this session.
However, if the price passes the 50-hour SMA, the next target for the crude oil price will be at the 58.00 mark.
As shown on the chart, a breakout occurred through the bottom border of the pattern during the Asian trading session on Tuesday.
Given that a breakout had occurred, it is likely that the UK’s crude oil price will continue to edge lower within this session.
The potential downside target for the commodity price will be near the weekly S3 at 56.03.