Brent oil traded lower yesterday, after it hit resistance at 74.15, a level last seen on the 27th of November 2014. However, the slide was stopped near the 72.75 support, marked by the peak of the 11th of April. The price continues to trade above the long-term uptrend line drawn from the low of the 21st of June 2017 and thus, the broader upside path remains intact in our view. As for the short-term picture, we believe that it is positive as well. On the 4-hour chart, the price structure remains of higher peaks and higher troughs above all three of our moving averages, which point north.
If the bulls manage to take the reins from current levels, then we may see them aiming for another test near the 74.15 barrier, the break of which may pave the way for the psychological zone of 75.00. Another break above 75.00 could open the way for our next resistance of 76.75, marked by the inside swing low of the 14th of November 2014.
Taking a look at our short-term oscillators, we see that the RSI, already above 50, has turned up again and looks to be headed near its 70 line. However, the MACD, although positive, lies below its trigger line. What’s more, there is negative divergence between this indicator and the price action. We would like to see the MACD turning up and crossing back above its trigger line before we get more confident on larger bullish extensions.
On the downside, a dip below 72.45 could confirm the negative divergence between the MACD and the price action, and could signal the beginning of a bigger corrective phase. Such a dip may see scope for downside extensions towards our next support of 70.70.
Are you interested in institutional-grade research? Sign up for our Weekly Strategic Report HERE – it’s free!
Article written by Charalambos Pissouros, Senior Market Analyst at JFD Brokers
You want more? Visit our Research Website HERE, or subscribe to our JFD YouTube Channel HERE. To contact Charalambos send an email to [email protected]
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.
72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure
Recommended Content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.