Market Analytics and Considerations
Key Notes
- This morning’s scant liquidity is probably going to result in little Brent crude price fluctuations.
- This week’s key crude oil releases are slated.
The fundamental background of Brent crude oil
This Monday, Brent crude oil is trading slightly lower thanks to a stronger U.S. dollar, which could be understood by Friday’s upbeat Michigan consumer sentiment figure in addition to the markets’ enthusiasm following the release of the U.S. CPI.
Due to Martin Luther King Jr. Day in the United States, trade might be a little quiet today across all markets, but the upcoming week contains the monthly oil report from OPEC, China’s GDP and industrial production, as well as the usual weekly API, EIA, & Baker Hughes statistics.
From a dollar standpoint, the inflation focus of recent is progressively fading owing to subdued inflation, placing the job market in the limelight. The U.S. employment market still seems to be tighter as of right present, which gives the Federal Reserve some encouragement to keep hiking interest rates, albeit more gradually. Fed funds futures indicate a reasonably high possibility of further 25 bps increases at the upcoming summits both February & March.
Technical view
A growing symmetric triangular configuration can be observed in the daily Brent crude oil price action while bulls face opposition at the psychological $85/barrel mark. Considering that the 50-day SMA joins the growing chart patterns, this essential element of convergence. A symmetric wedge can typically burst out on any side, but it likely to promote the previous trend (in this example, downhill), making Brent crude vulnerable to upcoming support regions.
Major resistance levels:
87.28
Triangle resistance
85.00/50-day SMA
Major support levels:
82.38
80.86
80.00
