The Brent crude oil continued its formation of higher lows and higher highs for five sessions and till this formation doesn’t invalid market is likely to cherish the favorable sentiment.
Brent crude oil which rose a record high of 66.75$ witness some bit of weakness against 200EA on Monday. The price action finally broke above the critical resistance at 64.00$ and made a strong bullish weekly candle after four weeks of consolidation, which opens the deck for my next targets forecast last week.
We are excited to be heading North with the launch of “consolidation and break higher” strategy which we can on Gold back in mid-January and even last week as well.
At heart, if the new bulls run since post-Christmas 2018, the critical support level stands at 59.00$. Finally, the bulls took charge and now hold above 63.60$ would bring the price towards news highs of 68.50$ and 70.00$ which are our next targets. However, a resistance can be placed around 67$ against the 200EA.
“We leave our price forecasts unchanged for now but recognize that our $70/bbl bull case for Brent is looking more likely.” Martijn Rats and Amy Sergeant, Commodity Strategist at Morgan Stanley noted in a note to client.
Fresh, optimistic news published by Reuters on Monday. “Oil traders no longer expect the market to be over-supplied this year, amid optimism a full-blown U.S.-China trade war will be averted, and oil production growth will slow thanks to OPEC cuts and sanctions on Venezuela.”
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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