Brent crude oil price was marginally lower on US-China tensions. The price has been moving in a well-defined ascending triangle pattern with painting a higher lows pattern on the four-hour chart in the past five weeks. Finally, the price filled the gap standing at $45. However, daily gains were limited for the past five weeks on near-term demand concerns.
The technical picture remains the same since early-June. Traders can keep an eye on $45 -$45.80 levels on the higher side. The higher low and higher high patterns continue to support the oil price.
The near-term support finds at $42.80 below here focus on $42.50.
Since 22 April low, the price rallied more than 170% buy still 33% down from this year’s opening levels. In the first half of 2020, OPEC+ production cuts made a significant contribution to push the oil price above $40 per barrel.
Market participants appear to be nervous in taking a strong view either way on the market, with plenty of uncertainty still clouding the outlook when it comes to demand, ING said in a note on Monday.
View: Limited upside. Stay put.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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