Brent Oil Technical Analysis: Key 61.8% Fib hurdle crossed


Brent oil has pulled back from the five-month high of $74.28 hit earlier today, but the price is still holding well above $72.80, which is the 61.8 percent Fibonacci retracement (golden ratio) of the drop from the October highs to December lows. 

As of writing, Brent is changing hands at $73.78 per barrel, representing a 2.57 percent gain on the day, with the 14-day relative strength index (RSI) at 76.08 – the highest levels since October.  Put simply, brent is most overbought in five months. 

Overbought readings on the RSI do not imply bearish reversal but represent temporary bullish exhaustion, which usually yields a minor pullback or consolidation. 

Any dips will likely be short-lived, as the US is reportedly planning to force the Iranian oil imports to zero. 

Daily chart

Trend: Overbought

    1. R3 71.52
    2. R2 71.52
    3. R1 71.52
  1. PP 71.52
    1. S1 71.52
    2. S2 71.52
    3. S3 71.52

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD capped under 1.13 as Lagarde hints at inaction

EUR/USD is trading below 1.13, steady. ECB President Lagarde hinted she will pause in next week's decision while urging leaders to agree on fiscal stimulus. US coronavirus data and Sino-American relations are eyed.

EUR/USD News

Gold: Bulls await fresh impetus to conquer $1800

The flight to safety theme, in the face of rising coronavirus cases and regional lockdowns globally, drove Gold drove to its highest level since November 2011 just below the $1800 mark. Will it conquer the key level in the day ahead? 

Gold News

GBP/USD holds up around 1.2550 ahead of Sunak's speech

GBP/USD is trading around 1.2550, holding onto its gains. UK Chancellor Sunak is set to lay out the fiscal stimulus plan. Brexit remains deadlocked as PM Johnson told German Chancellor Merkel that Britain could leave without a deal.

GBP/USD News

Forex Today: Gold eyeing $1,800, dollar mixed, as coronavirus, Hong Kong peg move markets

Markets are looking for a new direction after stocks retreated and the dollar gained some ground on Tuesday. Concerns about coronavirus cases in the US and geopolitical tensions are in play.

Read more

WTI looks for a firm direction below $41.00, EIA inventories eyed

WTI recedes from intraday top while also keeping the bounce off daily low near $40.30. Global pressure on China, coronavirus resurgence keeps a lid on the blackgold. European oil giant follows BP and Shell to cut price forecast. EIA Crude Oil Stocks expected to drop 3.4M versus prior fall of 7.195M.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures