Brent crude oil prices may be using a broken trend line resistance as a support zone.
Will oil prices bounce from the potential technical support area in the next few days?
We’re looking at UKOIL’s 4-hour chart today!
If you missed our latest global recap, you should know that the previous week was NOT a good week for crude oil prices after oil firms like OPEC and IEA downgraded their 2024 global demand forecasts and peace talks in the Middle East lowered the odds of escalating geopolitical tensions in the region.
Brent crude oil turned lower from the $82.35 levels, but eventually found enough buyers and popped up tall bullish wicks near $79.00 when global risk sentiment improved.
UKOIL is trading just above $79.00, which is in line with the 38.2% Fibonacci retracement of August’s biggest upswing. More notably, Brent crude seems to be finding support from a trend line resistance that the commodity busted through earlier this month.
Are we looking at a resistance-turned-support scenario in the making?
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 market sentiment, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Look out for more wicks around $79.00 and green candlesticks that may hint at a technical bounce from the support zone. A move to $81.00 or $82.00 may be in the works if UKOIL starts seeing consistent bullish candlesticks above $79.00.
Of course, oil bears may just be taking a breather.
If any of UKOIL’s candlesticks close below the $78.60 lows from the previous week, then Brent crude may be in for more losses. The asset may reach the $78.00 levels near the 50% Fib or revisit its August lows near $75.00 before it sees sustained buying pressure.
Keep your eyes peeled for headlines or potential catalysts that may influence geopolitical concerns or broader risk sentiment trends for clues on where UKOIL may be headed next!