Commodities

Brent oil neutral in $43.72-$44.54 range

Reuters SINGAPORE | Updated on November 17, 2020 Published on November 17, 2020

Brent oil looks neutral in a range of $43.72-$44.54 per barrel, and an escape could suggest a direction.

The range is formed by the 14.6% and the 7% projection levels of a downward wave C from $45.30. A break below $43.72 could cause a fall to $42.75, while a break above $44.54 could lead to a gain into $45.30-$45.98.

The nature of the gain on Monday remains unknown. It could be regarded as a bounce against the drop from $45.30, or a resumption of the preceding uptrend from the Nov. 2 low of $35.74.

 

On the daily chart, the rise was due to an ascending trendline. It seems the uptrend remains steady. However, oil failed to break a resistance at $44.39. It is now sandwiched in a narrow range from $42.07 to $44.39.

Signals will become clearer when oil gets out of the range.

** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

** No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

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Published on November 17, 2020
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