Brent crude oil prices may use the broken resistance line as a support zone.
Will oil prices bounce off the potential technical support area in the next few days?
We are looking at the UKOIL 4-hour chart today!
Brent Crude Oil (UKOIL) 4 hours Chart by TradingView
If you missed it Latest Global SummaryYou should know that last week was not a good week for crude oil prices after oil companies such as OPEC and the International Energy Agency lowered their forecasts for global demand for 2024, and peace talks in the Middle East reduced the chances of escalating geopolitical tensions in the region.
Brent crude oil price fell from $82.35 levels but eventually found enough buyers and strong bullish signals emerged near $79.00 as global risk sentiment improved.
UK crude is trading above $79.00, which is in line with the 38.2% Fibonacci retracement of the biggest rally in August. More importantly, Brent appears to be finding support from the trendline resistance it broke earlier this month.
Are we about to see a scenario where resistance turns into support?
Remember that directional biases and volatility in market prices are usually driven by fundamentals. If you haven’t done your homework on crude oil and market sentiment, it’s time to check out the economic calendar and stay up to date with daily fundamental news!
Watch for more wicks around $79.00 and green candles that could signal a technical bounce from the support area. A move towards $81.00 or $82.00 could be in the works if UKOIL stock starts seeing consistent bullish candles above $79.00.
Of course, the oil bears may be taking a break.
If any of the UKOIL candles close below the previous week’s lows of $78.60, Brent crude could be poised for further losses. The asset could reach $78.00 levels near the 50% Fibonacci level or revisit the August lows near $75.00 before seeing sustained buying pressure.
Keep your eyes peeled for headlines or potential catalysts that could impact geopolitical concerns or broader risk sentiment trends for clues on where UKOIL might head next!