Check out our new Trading Guides: they’re free and have been updated for the second quarter of 2018 and include all the major currencies, oil, gold and indices.
Brent Crude to Retest Recent High
Brent crude has been in the headlines lately hitting the highest level since December 2014 due to the escalation of action in Syria. While further direct action against Syria is currently on hold, the threats emanating from Russia and the potential for fresh US sanctions on Russian leaves oil with a strong geopolitical bid.
Brent traded back above its January peak, just over $71.00/brl and has now settled above this level in the last 7-8 trading sessions. Any re-test of this level opens the way for a fresh long position with a tight stop loss at $69.90, the April 2 low and the April 10 high. Bullish animation can be seen with the 50-day moving average crossing back above the 100-day moving average, a positive momentum indicator. On the upside we target $72.75/brl, just below the April 11 high of $72.80/brl.
Chart: Brent Crude Price Chart Four Hour Timeframe (March 26 – April 17, 2018)
Chart by IG
On the daily chart a bullish flag is forming, another bullish indicator, while support is also seen from the 20-, 50- and 100-day moving averages.
Chart: Brent Crude Price Chart Daily Timeframe (September 2017 – April 17, 2018)
Entry Point: $71.00/brl. (Price at time of writing)
DailyFX has a vast range of resources to help traders make more informed decisions. These include a fully updated Economic Calendar, Educational and Trading Guides for 2Q 2018 and the constantly updated IG Client Sentiment Indicator.