Crude oil tentatively resumes uptrend

June 21, 2016

Since late last week, the decline in Brexit concerns due to new polls showing resurgent momentum for the Remain camp has had significant consequences for financial markets. A new-found perception of lower risk ahead of this week’s EU referendum in the UK has led to a sharp relief rally for the previously pressured British pound as well as weaker performance for traditional safe haven assets like gold, yen, the US dollar, and Swiss franc.

In turn, this has increased appetite for riskier assets including equities and crude oil. In the case of oil, a risk-on market environment coupled with a sharp drop for the dollar has helped to boost crude prices for the second consecutive day after the previous week saw a substantial pullback.

For the international crude oil benchmark, Brent crude, this price action has been displayed as a sharp drop and then a rebound off a key uptrend support line last week. This trend line forms a part of a major parallel uptrend channel that extends back to the January lows below $27.

As of Monday, Brent crude has extended last week’s rebound, reaching back above the key $50 level. From a technical perspective, therefore, the five-month bullish trend has been effectively salvaged for the time being. With the UK’s EU referendum only a few days away, however, the near-term directional bias for crude oil could be significantly affected by the outcome of the vote, along with other major financial markets. Of course, oil prices will also be largely dependent upon supply fluctuations and disruptions as have contributed to the rise in prices for the past several months.

While Brent’s uptrend currently remains intact, key fundamental and technical resistance should pose a formidable barrier to much further appreciation, at least in the short-term. Even if price reaches above June’s year-to-date high around $52.50, major resistance resides just above at the $54 price level, which has served to halt Brent’s rise since August of last year. To the downside, any breakdown below the noted parallel uptrend channel could open the way for significantly further losses towards the key $42 support level.

Publication source
FOREX.com information  FOREX.com reviews

September 28, 2016
Crude rises, though market faces long wait for next OPEC move
On Wednesday, crude futures inched up during early Asia trade, as market players shifted their focus to November, the time when key crude producers could decide on a more definitive plan to drop output, which has suppressed prices for two years...
September 28, 2016
No agreement to cap or freeze oil output
Asian stock markets are heading south, led by a slide in Japanese markets, (Nikkei closed down -1.31%) as more than half the companies on the benchmark traded without the right to the next dividend, a biannual event in Japan that tends to weigh on markets...
September 28, 2016
FIBO Group: consensus won't be archived
Since the beginning of this week representatives of oil world has been discussing hot issues concerning the field of oil production. An extraordinary meeting of the oil companies is held in Algeria on 26,27 and 28 of September 2016.

OANDA Rating
FOREX.com Rating
FIBO Group Rating
FXCM Rating
FXTM Rating
Larson&Holz IT Ltd Rating

OptionRally Rating
OptionBit Rating
365BinaryOption Rating
Binary Brokerz Rating
Empire Option Rating
Banc De Binary Rating