- Broken rising trendline
- Corrective ABC structure in progress
- 100MAs are in focus if 50MA off
With Brent oil holding the 50MA last week the price has shifted the action from bearish to a consolidation phase. Traders are focused on the upcoming OPEC meeting in Vienna on June 22. ” crude production in May slid for the fourth straight month to 31.90 million b/d, the lowest in over a year”, according to the latest S&P Global Platts survey of industry officials, analysts, and shipping data.
As shown on the below chart, the price has been trading in the falling channel with lower lows and lower highs pattern formation. Intraday trading resistance dropped to 77.40$ from 79.10$, flips side support has crawled to 74.80$ its 50MA from 74.50$.
A break below $ 75.00 could lead to further adjustments to $74.00 and $ 73.50 initially. The broken rising trendline indicating the Brent oil has additional downside risk. The corrective A-B-C structure on the H4 and Daily charts are pointing to 73.00$ and 71.40$ levels.
Ahead of the OPEC meeting, supply zone spread between 78.10$-79.10$ with solid support at 71.50-70.50$ its 100MA exists.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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