The Brent crude oil strengthened last two days as 78.6% fibs supported if we look at the technical aspect. Besides on the fundamental side, concerns that Iran’s seizure of a British tanker helped the price to rebound.
Short-term: Indeed, we see a risk of a bounce-back in the short-term, a break above 64.00$ may pave the way for higher prices through 65.00$, suggests by A-B-C wave pattern. (H1 chart)
However, overall, the price is expecting the retrace to test 58.00$ level in the medium term, which is the equality of its 200MA (Weekly) and 50MA (Monthly).
As we continue to forecast Brent to head lower to 58.00$ in the coming weeks, so we will look for another opportunity to return to short Brent.
Reuters reported that the International Energy Agency (IEA) doesn’t expect oil prices to rise significantly because demand is slowing and there is a glut in global crude markets, its executive director said on Friday.
“Prices are determined by the markets…If we see the market today, we see that the demand is slowing down considerably,” said IEA’s Fatih Birol, in public comments made during a two-day energy conference in New Delhi.
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