Brent oil is losing ground as expected earlier today .... courtesy of which the weekly candle is now a Gravestone Doji. Losses are likely to be extended to weekly 5-MA level of $46.63 levels.
Daily chart of US Oil/WTI Oil does not show any negative price-RSI divergence as we spotted earlier today on the daily chart of Brent oil. So the question arises is whom to trust as major reversals usually happen after bearish divergence with RSI. Though Brent shows it WTI does not. From traders perspective, it is important to see if both benchmarks drop and...
A look at the hourly chart shows rising trend line has been breached and higher highs formation on the price is accompanied by lower highs on RSI indicating a bearish divergence. The American Petroleum Institute reported that U.S. crude supplies fell by 1.1 million barrels for the week ended May 13. Markets were expecting a decline of 3 million barrels. Traders...
Hourly chart pattern - bearish price RSI divergence Resistance - $50.00, $50.89, $52.00 Support - $47.79, $46.80, $45.32 Brent appears poised to test psychological level of $50.00 if prices confirm a close above $49.38 on hourly chart. Moreover, such a closing would negate the bearish price RSI divergence on the hourly chart. Failure to do so could...
Check out the monthly chart. If we join Dec 1998 low and Nov 2011 low and extend the trend line to infinity, we see it acting as a resistance today around $48.00. Note the trend line acted as a strong support post 2008 crash. Watch for exhaustion as prices near $48.00 as we may head back to $45-43 levels on repeated failure near $48.00.
Another important point to note is Brent oil has retracted 50% of Apr 2015 high to Jan 2016 low. The level stands at $48.34, while prices currently trade around 48.70 levels. Earlier today, I had posted on a possible bearish price RSI divergence on the daily chart , if today's day end closing is weak. If prices end below $48.00, that would mark a bearish...
Resistance - $48.88, $50.00, $50.89 Support - $47.79, $46.80, $45.32 Brent set a new yearly high of $48.63 in Asia is now trading around $48.44 levels. The previous 2016 high was $48.26. A negative daily closing today would confirm bearish price RSI divergence on the daily chart following an inside day Doji candle. Hence, that could open doors for a slide...
Resistance – 47.99, 48.26, 50.00 Support – 47.54, 46.74, 46.16 Daily chart – Possible double top formation, ‘Golden crossover’ Brent’s positive move yesterday confirmed the golden crossover – bullish crossover between daily 50-SMA and 200-SMA. Usually a laggard indicator, this time it may be different, given we are coming off from an oil price crash. ...
Indication of major reversals on the charts usually come in the form of bullish/bearish price divergence with indicators (I prefer RSI). As of now, Brent is trading around $47.80. Today's high stands at $48.07, while the latest cyclical high is $48.26. Traders need to watch out for a "rise above $48.26, followed by a negative daily closing". Look at daily...
Resistance - 47.99 – 48.26, 50.00, 52.55 Support – 46.97, 45.75, 44.16 Brent’s rally yesterday has pushed the hourly RSI into overbought territory at a time when prices are a few points away from $47.99 (23.6% Fibo of June 2014 high-Jan 2016 low). Hence, bulls need to observe caution as corrective move towards $47.00-46.50 cannot be ruled out. ...
Daily Chart Resistance – 46.27, 47.00, 48.34 Support – 44.87, 44.16, 42.40 Brent’s bullish move yesterday if followed by a break above weekly 50-MA hurdle of 45.56 could result in a rise to 46.27 (weekly high). Such a move looks possible if prices bounce-off daily 5-SMA support 44.86 levels. A break above 46.27 could see prices test supply...
We have a head and shoulder breakout on the hourly chart, similar to the one seen on Brent hourly chart . Hourly chart has confirmed a break below neckline level of $43.66. Failure to sustain above neckline followed by a drop below $43 levels could trigger a drop to confluence of support at $41.89 mentioned here . On the other hand, a day end closing above...
Daily Chart shows a strong support at $41.89 (Rising trend line + 23.6% of Feb 2016 low - Apr 2016 high).
Pattern - Rising trend line breached, Head and Shoulder breakout Brent's bearish break from rising trend line followed by a head and shoulder breakout ...and a failed attempt to rise above neckline today indicates prices could take out daily low of $43.30 and extend losses to $42.52 (Mar 18 high). On the contrary, an hourly closing above neckline level of...
Daily Chart Resistance - $46.74, $47.42, $47.97 Support - $45.30, $44.16, $42.48 Brent’s rebound from near $44.00 levels last week has kept the hopes alive for a golden crossover - a bullish crossover between 50-SMA and 100-SMA. The question is whether this will trigger a fresh rally in oil. Golden crossover usually is a laggard indicator....
Brent's retreat from daily highs along with bearish 5-SMA and 10-DMA crossover if followed by a break below daily low(also marking a failure to sustain above rising channel & trend line) may result in a sharp sell-off tomorrow and next week. On the other hand, daily close today back inside rising channel following a spinning top formation and possible golden...
Brent's daily chart shows bearish crossover between 5-SMA and 10-SMA. Hence, traders should watch out for a possible sell-of from there that may result in a break below daily low of $45.14. That would also mark a failure to sustain above the rising channel and rising trend line levels and could yield a drop to $44.16 (previous day's low). On the higher side,...
Support - $43.26, $41.05 Resistance - $45.11-45.44, $46.00 Brent's failure to sustain and capitalize on a rebound from the rising trend line support earlier today followed by a break below rising trend line itself indicates bullish invalidation. A daily close below rising trend line would expose $43.26 (23.6% Fibo of Jan-April rally). Also watch out for...