Brent – Rising channel, above 38.2% Fibo

brent oil.png

Brent oil is now at fresh 2016 high on hopes major producers will sign production freeze accord over the coming weekend. That shall still keep markets oversupplied by about 2 million barrels per day.

Still, prices are on the rise as output freeze accord would signal major powers are ready to come to common terms and may eventually end up cutting production.

Technicals – Rising channel

Rising channel is seen on the daily chart and given the a daily close abv $43.32 is not a done deal, the doors are open for a rebound from the same tomorrow/continuation of the rally to channel resistance at $46.54.

Buyers should take a note of the fact that on the hourly time frame RSI is forming lower highs while price is forming higher highs, indicating the move above $43.00 could be a bull trap. Caution is advised especially in positional trades.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s