News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Crude Oil Price Struggles For Momentum- Brent Oil Forecast

Crude Oil Price Struggles For Momentum- Brent Oil Forecast

Mahmoud Alkudsi, Analyst

Crude Oil Technical Outlook

  • Oil rallied to a multi-week high over a decline in US stockpile
  • Brent oil price chart exposes a continuation pattern

Disrupted Rally

Last week, Brent oil hit a two-week high of $43.71 without committing to a new bull trend. Ultimately, the price slipped lower and closed the weekly candlestick with a Doji pattern and reflected the market’s indecision at that stage. Alongside that, the Relative Strength Index (RSI) rose remained flat above 50 and highlighted a paused bullish momentum.

This week, Oil prices have surged to a three-week high at $43.91 due to news of a sharp fall in US inventories as per data from the American Petroleum Institute. However, news about OPEC+ agreement to ease record supply curbs from next month, combined with the uncertainty of global recovery in fuel demand as new COVID-19 cases surge in several countries kept the lid on any further positive move.

Brent Oil DAILY PRICE CHART (Feb 1, 2019 – July 17, 2020) Zoomed Out

Brent Oil Daily Price Chart
{{GUIDE|Oil|Download our fresh Q3 Oil Forecast}}

Brent Oil DAILY PRICE CHART (May 15 – July 17, 2020) Zoomed IN

Brent Oil Daily Price Chart

On Tuesday, Brent rallied to the current trading zone $42.84 – $46.21. As we see the price failed twice to break above the upper line of an ascending triangle pattern located at $43.75 rebuffing efforts to resume bullish price action.

A close below the low end of the current trading zone may ultimately guide the Brent’s fall towards the weekly support level at $39.67, and a further close below that level could embolden bears to press towards the monthly support level at $37.18.

On the flip-side, the daily chart shows that the market rebounded around the low end of the current trading zone. Another close above that level may open up a push behind Brent oil towards the high end of the zone.

Brent Oil Four-Hour PRICE CHART (June 24 – July 17, 2020)

Brent Oil Price Chart

Crude oil today has rebounded from the bullish trendline support originated with the June 10 low at $41.39, and kept the bullish potential alive. That said, any break below the lower line of the ascending triangle would generate a bearish signal.

To conclude, a break above the psychological level $44.00 may trigger a rally towards the high end of the current trading zone discussed above on the daily chart, while a break below $41.39 could send Brent towards $40.00 mark. As such, the weekly support and resistance levels underlined on the four-hour chart should be watched closely.

Written By: Mahmoud Alkudsi, Market Analyst

Please feel free to contact me on Twitter: @Malkudsi

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.