#Brent crude - an important inflection area
This analysis is done on a monthly chart so this could still consolidate and take some time to play out but just a few interesting points to note:
(1) the 200 month moving average (green line) has acted as a support and resistance level for the price of brent crude for the last decade and a bit (looks to be supporting price action currently)
(2) the 61.8 fib from the extreme April '20 lows and March '22 highs come in at around $77.60 where the market recently bounced from
(3) resistance monthly highs in October '18 and October '21 seem to be now acting as support (change of polarity).
(4) RSI 50 level holding on the RSI
(5) Price candle action (wicks) on the monthly chart over the last quarter shows that the bulls are ready to buy into any weakness during the month
(6) Not shown on the chart but if you look at the daily chart we are forming a flat top triangle which usually breaks to the upside which also has a target at roughly $100
Given the significance of this consolidation zone between 77 and 84 leads to a high probability that OIL will once again move higher after this consolidation phase is complete. Thus on a medium term view I would use any weakness in Brent crude to accumulate a position for higher levels with a medium target around the $100 mark
If you look at seasonality data for Crude oil futures in the past, you can see it enjoys a favourable period from the end of February to around end of September.
www.equityclock.com/...s-cl-seasonal-chart/
(1) the 200 month moving average (green line) has acted as a support and resistance level for the price of brent crude for the last decade and a bit (looks to be supporting price action currently)
(2) the 61.8 fib from the extreme April '20 lows and March '22 highs come in at around $77.60 where the market recently bounced from
(3) resistance monthly highs in October '18 and October '21 seem to be now acting as support (change of polarity).
(4) RSI 50 level holding on the RSI
(5) Price candle action (wicks) on the monthly chart over the last quarter shows that the bulls are ready to buy into any weakness during the month
(6) Not shown on the chart but if you look at the daily chart we are forming a flat top triangle which usually breaks to the upside which also has a target at roughly $100
Given the significance of this consolidation zone between 77 and 84 leads to a high probability that OIL will once again move higher after this consolidation phase is complete. Thus on a medium term view I would use any weakness in Brent crude to accumulate a position for higher levels with a medium target around the $100 mark
If you look at seasonality data for Crude oil futures in the past, you can see it enjoys a favourable period from the end of February to around end of September.
www.equityclock.com/...s-cl-seasonal-chart/
Comment:
typo - fib area was 50% and not 61.8%
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