Brent Crude Oil Price Stuck in a Pennant Pattern


Brent crude oil price is stuck in a pennant pattern as it approach $85/bbl on supply concerns about lower levels of world oil supply. What can traders expect next?

3 October, GKFX – Brent oil has charted a pennant pattern on the hourly chart. An upside break would signal a continuation of the rally from the low of $82.52 and may yield a break above the recent high of $85.42.

Could Oil See a Pennant Breakout?

The stacking order of the 50-hour exponential moving average (EMA), above the 100-hour EMA, above the 200-hour EMA, indicates the path of least resistance is on the higher side. The hourly chart relative strength index (RSI) has regained bullish bias and is again trending north. As a result, oil could see a pennant breakout in the next few hours.

The ascending 10-day EMA of $82.50 could come into play if the pennant is breached to the downside.

Hourly Chart

Current Price: $84.91

Daily High: $84.94

Daily Low: $84.59

Trend: Bull breakout likely

Resistance

R1: $85.00 (psychological hurdle)

R2: $85.42 (Oct. 1 high)

R3: $86.00 (zero level)

Support

S1: $84.35 (previous day’s low)

S2: $83.85 (bullish 5-day EMA)

S3: $82.50 (ascending 10-day EMA)

Disclaimer

This article was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

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