Weekly chart pattern – Inverse H&S with neckline resistance at $51.95 Daily chart – Money flow index is well into overbought territory, RSI is yet to hit overbought levels. Overall, it appears the prices are likely to stay upbeat, although overbought money flow index could take the wind out of the bullish momentum, thus leading to short-term sideways action...
Brent’s five day winning streak has pushed ended up setting a bearish price RSI divergence on the hourly chart. The daily and hourly money flow index is overbought as well. We also have a breach of hourly rising trend line. However, the daily RSI is rising and is yet to hit the overbought territory. Hence, it is safe to anticipate a minor pull back in prices...
Oil’s four –day winning streak came to a halt after US API reported a surprise inventory buildup of about 2 million barrels last week, which contradicted expectation of a one million barrel drawdown. Prices may drop to $44.40, but reckon the falling wedge support may hold and fuel a rebound given the daily money flow index has breached the falling trend. The...
Bent’s daily close back inside falling wedge coupled with a bullish 5-DMA and 10-DMA crossover indicates prices are poised to test supply around 100-DMA level of $46.18 levels. However, short-term loss of momentum following a four-day winning streak cannot be ruled out, thus prices may test 5-DMA level of $44.42 before moving higher.
Brent prices rallied on reports OPEC to Hold Talks in September as Oil Market Takes Downturn. Brent’s daily close back inside the falling wedge today would open doors for a test of daily 100-MA level of $46.14. On the lower side, only a break below $44.23 (today’s low) could yield a re-test of $43.00 levels.
Weekly chart shows a big inverse head and shoulder formation.. a reversal pattern which is valid when it has appeared at the bottom of the bear trend.
Oil’s rebound from the low of $39.24 following a bullish price RSI divergence on 4-hr chart and a move above $40.85 (23.6% of 46.06-39.24) suggests a temporary loss of bearish momentum, nevertheless, the fresh bear turn in the hourly MACD and RSI’s retreat from overbought territory indicates prices could take out $39.24 and test hourly 50-MA support seen at...
The bullish price RSI divergence seen on the 4-hr chart suggests prices could be heading higher to $40.85/barrel (23.6% of $46.06-$39.24) levels. Daily RSI has almost hit the oversold territory, while the daily candle has turned positive - green hammer. This adds credence to the view that prices may correct to $40.85. On the other hand, an hourly...
Oil bullish price RSI divergence on 4-hr chart could yield a move higher to $42.70 (falling trend line resistance), which if breached would add credence the bullish divergence and open doors for $43.83. On the lower side, a break below $41.85 would signal the failure of bullish price RSI divergence and open doors for a drop to $41.00 handle.
Oil’s failure to take out $41.86 (38.2% of Feb low-June high) and a slide to $40.80 despite having bounced off from 200-DMA on Friday suggests the bearish force remains strong and prices could test and actually break below 200-DMA level of $40.47. Such a move would expose $40.00 handle. On the higher side, only a day end closing above $41.86 would...
Brent’s recovery from Friday’s low of $42.49 amid broad based USD sell-off appears a corrective rally and thus caution is advised as prices trade above 5-DMA level of $43.52, especially since the Baker Hughes data released on Friday showed increase in rig count for fifth straight week. Above 5-DMA, fresh offers could come-in and push prices back to $43...
Brent’s day end closing below $42.99 (38.2% of Jan low – June high) on Thursday suggests prices are on track to test 200-DMA support at $42.15 levels today. Daily RSI is yet to hit oversold territory, there are no signs of bullish divergence. Daily MACD remains bearish as well. A minor technical recovery was seen in Asia, but that is failing to hold prices...
OIl's sharp decline in the last few trading sessions and a break below $41.86 (38.2% Fibo of Feb low-June high) has left prices oversold as per the hourly RSI. The hourly MACD is seen turning the corner as well. Consequently, we may see a minor corrective rally to $42.60-42.70 (falling wedge resistance), where a failure could provide fatal and open doors for a...
On the daily chart, we have two possible scenarios that could unfold - Either prices could see a daily closing below $42.99 (38.2% of Jan low - June high) and drop to 200-DMA level of $42.35 or else Prices could stage a rebound from 38.2% Fibo level of $42.99 and make a move towards $48.35 (50% Fibo of May 2015 high - Jan 2016 low). Amid growing signs of...
Brent’s bearish break from falling wedge pattern seen in the daily chart confirms a trend reversal and opens doors for a test of 200-DMA of $42.233 levels. However, a major breakout is usually followed by exhaustion and a re-test of selling interest around the breakout level. Hence, we may see Brent peep above the breakout level of $45.08. A failure to take...
Brent’s bearish closing below 100-DMA followed by a rejection at 100-DMA again suggests prices could be heading back to $45.15 levels. A daily closing below falling wedge would indicate a drop to $43.30 (May 10 low) - $42.23 (200-DMA). On the other hand, a break above 100-DMA would set in motion a corrective rally towards $46.67 (June 27 low).
Brent’s bearish break from a hourly symmetrical triangle on Thursday despite Wednesday recovery amid falling US inventories suggests prices are on track to test the falling wedge support seen on the daily chart at $45.23 levels. A daily closing below the same would open doors for a drop to 200-DMA level seen around $42.22. On the higher side, only a...
Brent’s rebound from yesterday’s low of $45.88 and move higher on the back of bullish inventory report if results in a bullish break from symmetrical triangle formation on the hourly chart would yield a fresh rally to $48.44 levels. On the flip side, failure to see a bullish break would once result in a sideways to choppy trading. On the lower side, only a day...