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Brent Price Analysis: Oil hits two-month high

  • Brent hits over a two-month high price of $44 per barrel. 
  • The daily chart shows a bullish channel breakout. 

Oil prices reached two-month highs a few minutes before the press time, extending the weekly gain on optimism generated by the US drugmaker Pfizer's disclosure of positive results of its coronavirus vaccine. 

Brent crude rose to $44.16, the highest level since Sept. 4. 

The move comes a day after the black gold advanced 4.76%, confirming an upside break of the channel pattern represented by trendlines Sept. 18 and Oct. 9 highs and Oct. 2 and Nov. 2 low and opening the doors for a re-test of the Aug. 31 high of $46.50. 

The breakout is backed by an above-50 or bullish reading on the 14-day relative strength index. Further, the MACD histogram is printing higher bars above the zero line, indicating a strengthening of the upward momentum. 

The bullish bias would be invalidated if oil ends Wednesday below $41.72 (Tuesday's low). 

Daily chart

Trend: Bullish

Technical levels

Brent Oil

Overview
Today last price44.16
Today Daily Change0.50
Today Daily Change %1.14
Today daily open43.72
 
Trends
Daily SMA2041.37
Daily SMA5041.75
Daily SMA10042.89
Daily SMA20040.54
 
Levels
Previous Daily High43.82
Previous Daily Low41.96
Previous Weekly High41.64
Previous Weekly Low35.85
Previous Monthly High43.76
Previous Monthly Low37.31
Daily Fibonacci 38.2%43.11
Daily Fibonacci 61.8%42.67
Daily Pivot Point S142.51
Daily Pivot Point S241.3
Daily Pivot Point S340.64
Daily Pivot Point R144.37
Daily Pivot Point R245.03
Daily Pivot Point R346.24

Author

Omkar Godbole

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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