Are we about to see a bounce or interruption in Brent crude?
The energy commodity has been forming lower highs and higher lows recently, creating a symmetrical triangle pattern on the 4-hour chart.
You better keep this triangle support area on your radar if you’re hoping to make a move!
Brent crude (UKOIL) 4 hours Chart by TradingView
Crude oil bulls have not been in a good mood so far this week, as OPEC+ once again cut global demand forecasts while warning of increased production from non-OPEC countries.
It did not help that US President-elect Trump called for increased drilling activity during his term, raising concerns about oversupply and dragging oil prices south.
Brent crude is still finding some support at the bottom of its symmetrical triangle that has been holding since September, but are we about to see a decline soon?
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven’t yet done your homework on crude oil and overall market sentiment, it’s time to check the economic calendar and stay up to date with daily fundamental news!
Support around S2 ($71.78 per barrel) appears to still be sustaining losses for the time being, which could allow oil bulls to once again set their sights on near-term upside targets at the pivot point level ($74.47 per barrel) or interest zone around R1 ($75.55). dollars per barrel).
Continued bullish momentum could lift Brent back to the top of the triangle near R4 ($79.32 per barrel) but stay on the lookout for a move below the bottom of the triangle, which could pave the way for a sell-off to support areas at S3 ($70.17 per barrel) then S4 ($68.56 per barrel).
As always, stay on your toes for key headlines that can influence risk sentiment and practice appropriate position sizing when making any trades!