Are we about to see a bounce or a break for Brent crude oil?
The energy commodity has formed lower highs and higher lows lately, creating a symmetrical triangle pattern on its 4-hour chart.
Better keep this triangle support zone on your radar if you’re hoping to catch a move!
Brent Crude Oil (UKOIL) 4-hour Chart by TradingView
Crude oil bulls haven’t exactly been in a good mood so far this week, as the OPEC+ once again downgraded global demand forecasts while warning about increased production from non-OPEC countries.
It didn’t help that U.S. President-elect Trump called for increased drilling activity under his term, spurring oversupply concerns and dragging oil prices south.
Brent crude oil is still finding some support at the bottom of its symmetrical triangle that’s been holding since September, but are we about to see a break lower soon?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on crude oil and overall market sentiment, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Support around S2 ($71.78 per barrel) still seems to be keeping losses at bay for the time being, potentially allowing oil bulls to set their sights back on near-term upside targets at the pivot point level ($74.47 per barrel) or the area of interest around R1 ($75.55 per barrel).
Sustained bullish momentum could lift Brent crude oil back up to the triangle top near R4 ($79.32 per barrel) but stay on the lookout for a move below the triangle bottom, which could clear the way for a selloff to the support zones at S3 ($70.17 per barrel) then S4 ($68.56 per barrel).
As always, stay on your toes for headlines that could impact risk sentiment and practice proper position sizing when taking any trades!
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