- Brent oil daily price pattern remains in an ascending wedge.
- Multiple tops placed at 52.75.
- Hurricane “Harvey” supporting the oil prices.
Bren toil price has been running a five-week long consolidation phase between 53.20 and 51.10.
CFTC Energy Weekly data reported a bullish sentiment hit a four-week low.
- Hedge funds and money managers cut their bullish bets on WTI for a 3rd consecutive week, data showed on Friday reported by Reuters.
- Venezuelan oil minister Del Pino plans to visit Russia, to discuss the global crude oil reduction agreement with Russian energy minister Novak and will visit Saudi Arabia before the OPEC meeting on 22 September to discuss possible adjustments to the cut-off agreement, Russia’s TASS news agency reported.
In terms of technical’s nothing has changed since five-weeks. The near term and medium term price action are likely being a sideways within a tight trading range between 53.50 and 51$.
The daily RSI is sloping down and spotted with a lower top. On the hourly chart, multiple tops spotted at 52.75 above this 53 exist. As shown on the below chart resistance gradually moving down to 52.30 vs 52.75.
On the daily chart, the price action remains in a lower high pattern, expressing a bearish view on the long term perspective. A foot step above 54.60 needed to forecast an extension in the near and medium term. Alternatively, a move below 50.90 needed to re-test the 50.60, 50 and even 49.70.
We repeatedly said, “Set of resistance zones are likely to play a significant role in the near and medium term. Initial zone seems at 53.50 and 53.70 above this 54.30 and 54.60 exists”.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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