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StockCharts365.com has today, Tuesday 11 June 2024, taken a closer look at the oil price and Brent Spot. Important technical signals about the further development may come shortly.


[11 June 2024]


Today, StockCharts365 has taken a closer look at the technical picture for the oil price (Brent Spot).


Important technical signals about the further development may come shortly.


 

Technical Analysis of the Oil Price (Brent Spot)

Charts are from the technical analysis program Vikingen. In the short picture, Brent Spot is now moving within a falling trend and is now close to the resistance level up against the upper trend line in this short-term falling trend (cf. daily chart). Furthermore, Brent Spot is below both the 50-day and 200-day moving averages, and the 50-day moving average is close to breaking down below the 200-day moving average (the so-called Death Cross signal in technical analysis). Various momentum indicators such as RSI, Stochastics and MACD do not give clear signals at the moment about the further direction of the Brent Spot. Besides the resistance level towards the upper trend line in the short-term falling trend, there is also significant technical resistance for Brent Spot around USD 84.00, and where, among other things, there is resistance towards both the 50-day and 200-day moving averages (cf. daily chart) . If we look at the weekly chart for Brent Spot, the oil price moves within a large consolidation formation, a symmetrical triangle formation (cf. weekly chart). What will provide the next important technical signals for the further development of the oil price in the medium term will be either a possible break through the significant resistance level around USD 84.00 for Brent Spot. Or a break down from the aforementioned large symmetrical triangle consolidation formation (cf. weekly chart). In the event of a break above the important technical resistance level around USD 84.00, short-term positive technical signals will be triggered, but the road is short to the next important technical resistance level around USD 90.00-92.00. If Brent Spot breaks above the USD 92.00 level and up from the large triangle consolidation formation we see in the weekly chart, the potential could be up to USD 110.00-120.00 in 6-12 months. What is most common about such triangle consolidation formations, however, is that after the consolidation is complete, it continues in the direction it had before the consolidation. For the oil price and Brent Spot here, that means downwards. The previous movement before this consolidation formation was a drop for the oil price from around USD 120.00 down to around USD 75.00. Overall, the technical picture for the oil price and Brent Spot is therefore negative as of today, and there may be new important technical signals about the further direction in the medium term in the near future. Keep an eye on the aforementioned important technical levels going forward.


 

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