Oil Technical Update
Brent Crude 9/3/2012 4H Chart 2:16PM EDT
So much for the breakout we saw in Brent Crude to start last week. It remained above 111.50 throughout the week, spent some time in near-term consolidation, and then break up toward the the larger, short-term consolidation that started mid- August. This "larger" consolidation is roughly between the high of 116.36 and 110.85, or 111.50.
The market is now focused on the consolidation resistance. Note that the RSI in the 4H chart held mostly above 40, and is now back above 60, kissing 70, a sign that the bullish momentum from before persists and is intact.
First of all there is a previous resistance pivot at about 120.10, then a previous consolidation support pivot at about 121.10. A consolidation breakout projection using the width of the current consolidation into the direction of the breakout, also targets somewhere near the 121.10 level.
If this bullish extension develops, we should also expect the CAD to firm up.
Brent Crude Daily Chart 10:15AM EDT
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
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