Tomasz Wisniewski
Axiory Global Ltd.
Oil is still struggling to climb higher, despite the fact that, in general, commodities are doing fine. That’s largely due to a weaker USD. Brent oil is currently testing a very important horizontal support, which has held its price from dropping since the end of October.
Let’s start at the very beginning. Between June and the beginning of October, brent oil has been going down inside a very handsome channel down formation (green). On October 5th, the price escaped the channel down to the upside, giving buyers hope. Despite an interesting technical situation, buyers were really struggling. The price couldn’t climb higher for the rest of October.
Most recently, brent oil created a Head and Shoulders pattern (yellow), promoting an end to the bullish correction. The important part in this formation is the neckline, which is the support mentioned at the beginning of this analysis. That’s the orange area around 93 USD/bbl.
Today, the price is trying to break this support again and its defence is getting weaker and weaker. If oil manages to close a day below the orange area, we’ll get a major sell signal, with the potential target on the lows from September. In my opinion, chances of that happening are quite significant.
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.