Simply once we thought we are able to *lastly* take that highway journey, main oil benchmarks are heading increased of their charts.
What’s up with that?!
Right here’s the chart that I’m taking a look at:
Brent Crude (U.Ok. Oil): 4-hour
Brent Crude (U.S. Oil) 4-Hour Chart
In case you missed it, Brent crude oil has been taking a chill capsule since hitting $138 earlier this month.
All of the promoting has dragged UKOIL again all the way down to $98 however costs have since climbed to $111. What’s up with that?!
A few components, because it turned out. For one factor, world leaders nonetheless haven’t resolved Russia’s invasion of Ukraine.
Waning fears of world progress have additionally inspired risk-taking and shopping for of high-beta property together with crude oil.
Lastly, Yemen’s Iran-aligned Houthi group has fired drones and missiles at Saudi’s power services and petroleum merchandise distribution terminal. Whereas the affect is momentary, there’s nonetheless a discount in Saudi’s manufacturing.
Will bulls proceed to push oil increased? Needless to say Brent crude is on an uptrend and has simply bounced from the 200 SMA on the 4-hour time-frame.
Watch how Brent crude responds to the 38.2% Fib of March’s downswing. Not solely does it line up with an space of curiosity from the primary weeks of the month however it’s additionally across the 100 SMA on the chart.
Resistance on the $112.50 ranges may drag oil again to the $106 or $100 assist zones.
A transparent break above the resistance zone, nonetheless, may push oil again as much as its month-to-month highs. Yipes!
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