Brent Oil Bullish Breakout at $80.00


Brent is currently trading at $80.00 and an acceptance above that level would confirm a falling wedge breakout. Could the price still rally $81.50? The following technical forecast reveals.

22 October, GKFX – Saudi oil production is likely to rise in the near future to 11 million barrels per day (bpd) on a steady basis, but the Kingdom cannot guarantee that prices won't rise above $100.

Khalid A. Al-Falih, Minister of Energy, Industry and Mineral Resources of Saudi Arabia and chairman of Saudi Aramco, stated this on Monday, according to Russian News Agency TASS.

Brent Technical Forecast

Brent is currently trading at $80.00 and an acceptance above that level would confirm a falling wedge breakout. The bull breakout, if confirmed, would mean that Brent has bottomed out near $78.55 (50% Fib R of the recent slide) and could yield a rally to $81.50.

The bull breakout would gain more credence if prices find acceptance above the downward sloping 200-hour, currently located at $80.97.

Hourly Chart

Current Price: $80.00

Daily High: $80.05

Daily Low: $79.61

Trend: Bullish above $80.00

Resistance

R1: $80.25 (5-day EMA)

R2: $80.85 (10-day EMA)

R3: $81.50 (resistance as per the hourly chart)

Support

S1: $79.48 (50-day EMA)

S2: $79.24 (previous day's low)

S3: $78.73 (Oct. 18 low)

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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