Heads up, oil bulls!
It looks like Brent crude oil is picking up on upside momentum once more. How high can it go?
Brent Crude Oil (UKOIL) 4-hour Chart by TradingView
Brent crude oil is still cruising inside its ascending channel that’s been holding since mid-December last year.
The commodity price found buyers at the bottom of the channel once again and is now closing in on the mid-channel area of interest.
Can it keep up its climb from here?
Moving averages are suggesting so, as the 100 SMA is still above the 200 SMA to confirm that the path of least resistance is to the upside.
Climbing past the middle of the channel at the $86/barrel level could clear the path for a move up to the next ceiling around $90/per barrel.
However, Stochastic is already hovering around the overbought region to reflect exhaustion among buyers and a possible return in bearish vibes. If that’s the case, Brent crude oil could dip back to the channel support.
Supply concerns stemming from the earthquake in Turkey are lifting the commodity price for now, as damages in the Ceyhan oil terminal halted production of roughly 1 million barrels per day.
At the same time, the progress of China’s reopening has lifted demand forecasts, particularly from the oil moguls in Saudi Arabia.
Just make sure you keep close tabs on market sentiment when trading risk assets like commodities!
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