BRENT CRUDE OIL FUNDAMENTAL BACKDROP
Brent crude oil prices have been marginally curtailed this morning after Chinese health officials reiterated this importance of their ‘zero-COVID’ policies, suppressing optimism around a Chinese reopening. This has left commodity prices largely in the red while a stronger USD adds to downside momentum.
Later this evening, API weekly stock data (see economic calendar below) is due and after last weeks surprise decline, another slip could give brent crude some support.
BRENT CRUDE (LCOc1) DAILY CHART -UNDATED
Daily brent crude price action shows a developing rising wedge chart formation (yellow). The RSI reading suggests slowing bullish momentum but still has room to push higher depending on the upcoming fundamental catalysts discussed above. Traditionally, a rising wedge points to impending downside after a bullish consolidation but confirmation needs to come from a candle break and close below wedge support which is a long way away at this point.
Key resistance levels:
- Wedge resistance
Key support levels:
- 95.00/100-day EMA (yellow)