• Contact Us
  • Homepages
Most Forex
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
Most Forex
No Result
View All Result
Home Technical Analysis

Crude Oil Price May Reverse Lower- Brent Oil Forecast

Forex Tips by Forex Tips
July 29, 2020
in Technical Analysis
0
Crude Oil Price May Reverse Lower- Brent Oil Forecast
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


Crude Oil Technical Outlook

  • The market adjusted between fears and hopes
  • Brent oil price chart exposes a reversal signal

Brent Price- Bulls Pullback

Last week, the Brent oil hit a four and a half-month high of $45.01. However, the price retreated after as some bulls seemed to cut back. Ultimately, a weekly candlestick closed in the green with a 1.1% gain. Alongside that, the Relative Strength Index (RSI) fell from 67 to 57 highlighting a weaker bullish momentum.

Factors like weaker US dollar price and positive news about the Coronavirus vaccine were behind moving the Brent oil higher, while the rising cases of COVID-19 in the US and elsewhere sparked fears over the global demand and limited the positive price move.

Brent Oil DAILY PRICE CHART (Feb 1, 2019 – July 27, 2020) Zoomed Out

Brent Oil Daily price chart zoomed out 27-07-20

Oil Forecast

Oil Forecast

Recommended by Mahmoud Alkudsi

Download our fresh Q3 Oil Forecast

Brent Oil DAILY PRICE CHART (May 15 – July 27, 2020) Zoomed IN

Brent Oil Daily price chart zoomed in 27-07-20

On July 14, the Brent climbed to the current $42.84 – $46.21 trading zone. As we see on the daily chart the price failed on multiple occasions to break through the lower trading zone indicating that bullish momentum remained intact.

However, it’s important to note the price and RSI divergence as the former created a higher high, while the latter created a lower high, signaling a possible reversal of the upward trend.

A daily close below the low end of the current trading zone may ultimately guide the price fall towards the monthly support at $39.68( December 2015 high).

Meanwhile, a daily close above the high end of the zone could encourage bulls to rally the Brent towards the monthly resistance at $51.41 (February 2015 low).

Traits of Successful Traders

Traits of Successful Traders

Recommended by Mahmoud Alkudsi

Traits of Successful Traders

Brent Oil Four-Hour PRICE CHART (June 24 – July 27, 2020)

Brent Oil Four Hour price chart 27-07-20

On Friday, Crude oil rebounded from the bullish trendline support originated from the June 25 low at $39.68, reflecting that bulls still in charge. That said, a break below that trendline may keep the bearish potential alive.

To conclude, while the bullish bias is still in place, the price/RSI divergence provides a good base of a possible reversal. Therefore, a break below the July 20 low at $42.50 could the Brent oil price towards $41.39, while a break above the July 22 low at $43.82 may trigger a rally towards $45.00 handle. As such, the daily support and resistance levels underlined on the four-hour chart should be watched closely.

Written By: Mahmoud Alkudsi, Market Analyst

Please feel free to contact me on Twitter: @Malkudsi





Source link

Share76Tweet47

Related Posts

US Dollar Breakouts Search for Momentum: USD/SGD, USD/IDR, USD/PHP, USD/THB

by Forex Tips
March 4, 2021
0

US Dollar, USD/SGD, USD/IDR, USD/PHP, USD/IDR – ASEAN Technical AnalysisUSD/SGD eyeing 100-day SMA as it trades within a Bearish...

Technicals Point to Higher Prices

Gold Trading Soft, Silver Price Trying to Hold Important Support

by Forex Tips
March 4, 2021
0

Gold & Silver Price OutlookGold trading near the bottom of a would-be long-term bull-flagSilver price trading on March trend-line,...

Dow Jones, DAX 30, FTSE 100, S&P 500 Forecasts for the Week

Monthly Forex Seasonality – March 2021: ‘Dollars’ Mixed but Gold, Stocks Favor Weakness

by Forex Tips
March 3, 2021
0

March FX Seasonality Overview:In recent years, March has produced EUR/USD gains, losses by USD/JPY, gold, and stocks. It’s a...

Brexit Latest: British Pound Rallies as EU-UK Agreement Nears

British Pound Forecast: Digesting Gains Around Spring Budget

by Forex Tips
March 3, 2021
0

British Pound Outlook:After a strong run higher, the British Pound may be due for a period of pullback, if...

Canadian Dollar Forecast: Loonie’s Wings Clipped?

by Forex Tips
March 3, 2021
0

Canadian Dollar Outlook:Canadian Dollar Flies Through TurbulenceThe Canadian Dollar was hobbled last week, nearly falling through key technical levels...

Load More

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos
Forex Pulse Detector

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos

Newsletter

  • Home
  • Contact
  • Privacy Policy
  • Store

© 2018 Forex Blog

No Result
View All Result
  • Contact Us
  • Homepages

© 2018 Forex Blog.