Nonetheless, a short-term bounce looks like it’s probably in the cards, but next week is Christmas week, so that obviously dampens the market’s volume and the like, so keep that in the back of your mind. I think any rally at this point in time probably sets up for a shorting opportunity. If we break down below $55, that would obviously be pretty negative.
Brent Crude Oil Weekly Technical Analysis
Brent markets look very much the same. Somewhere around $58, you have a floor from back in April and May, and we did touch that during the week, and we have turned around to show signs of life, so it’s at least fighting back. But again, this is another one of those market situations where it’s probably just a relief rally. I don’t see a reason why Brent takes off without some type of external factor, something along the lines of war, probably.
Ultimately, this is a market that I think is probably in the process of trying to find the multi-month bottom, which means it might get the occasional bounce, but I still look at rallies with suspicion. In fact, you’d have to at the very least break that downtrend line, if not break $65 here to get bullish for any significant amount of time.
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