Brent crude oil ended the Monday session with no significant moves but strengthened on Tuesday; price closed above 20MA. We would be concerned if the price could not push and hold above 64$ coincides with 38.2% fib reaction over this week ahead. A move beyond 64$ would bring back the sentiment in the market. In this case, we may see 65.20$ and 66.50$ and beyond levels towards 70$+.
However, traders remain cautious as concerns about the growing global economic growth. The near-term trend remains cautions. The oil price could find solid support at 60.50$ and 59.00$ levels in the week ahead. A drop below 58.90$ would seriously undermine our bullish view on Brent and paves the way for a deeper bearish correction 57.00$-56.60$ and 55.50$ levels.
David Lennox of Fat Prophets said in CBNC “ Brent crude could trade between 74$ and 84$ by end-2019”.
On a whole oil market is waiting for fresh clues like oil output cut or US sanctions on Venezuela could push the further price North.
“The forceful implementation of US sanctions on Venezuelan crude exports, the greater-than-expected recent Saudi crude output cut … and the uncertainty over US sanction exemptions on Iranian crude have all served to strengthen sour crudes relative to sweet benchmarks such as Brent,” said Tilak Doshi, a Singapore-based analyst at consultancy Muse, Stancil & Co reported by Arab news.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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