Traders Beware!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Charalambos Pissouros

Brent Oil Breaks the Upper Bound of a Triangle

Brent crude oil opened with a positive gap on Monday after the weekend meeting in Algiers, between OPEC and major non-OPEC oil producing nations, ended without any formal recommendation for additional production, despite US President Trump’s calls last week for lower prices. The black liquid continued moving north during the Asian morning and managed to trade above 80 dpb for the first time since May.

From a technical standpoint, the price emerged above the upper bound of an ascending triangle that had been containing the price action since the beginning of September. In our view, this may have opened the way for the 80.50 hurdle, the break of which may set the stage for our next resistance zone, at around 81.70, defined by the peak of the 21st of November 2014, as well as the inside swing low of the 5th of that month. Another break above 81.70 could encourage the bulls to put the 85.00 psychological zone on their radar, a territory also marked by the high of the 10th of November 2014.

Shifting attention to our short-term oscillators, we see that the RSI rebounded back above its 50 line and now looks to be heading towards 70, while the MACD lies above both its zero and trigger lines, pointing up. These indicators support the case for Brent to continue its upside trajectory for a while more.

On the downside, we would like to see a clear close below 78.10 before we abandon the bullish case. Such a dip would bring the price below the lower end of the aforementioned triangle and may encourage the bears to initially aim for the 77.10 support, near the lows of the 14th and 18th of September. Another dip below 77.10 may carry larger downside extensions and perhaps open the path towards the 75.70 area.

Brent Crude oil 4-hour chart technical analysis



The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.