Aug 01 2018

Brent heading for a somersault?

Technical analysis indicators show a double top reversal in sight on the Brent crude oil daily price chart, with the neckline taking support at 50% Fibonacci retracement at 72.86610 (support). The two consecutive peaks (at 80.49 and 79.79) that are roughly equal, with a trough in between are seen.

The oil price has attempted to touch the neckline before retracing back to 73.74000 level now. Maybe a triple top formation is being built before a trend reversal is seen. Though we would have to wait for atleast 2 months to get a clear indication if a triple top is under formation.

For the time being with sizeable drops in US stockpiles and signs of rising global supplies, Brent will seek next support at 71.16410 or 61.8% retracement level.

Relative Strength Index (RSI) at 46 and MACD is just below the zero line are mostly signaling neutral.

#BrentOil #TechnicalAnalysis #Myforexeye