Brent Crude Oil (UK) Technical Analysis
The Brent markets also have fallen during the day, and now are testing major support. We are at the very low of the previous consolidation area, so it’ll be interesting to see how this plays out. If we turn around and take out the 200-Day EMA above, then we could send the market much higher. Until then, I am a bit hesitant to be a buyer of this market. I think Brent also is reacting to the fact that the Middle Eastern war has not expanded, and that of course is a major factor when it comes to crude oil.
At the end of the day, the one that we need to watch closely is the fact that Europe is heading into a recession, the United States very well could early next year, and Chinese numbers have been dismal as of late. We are currently in an area that needs to cause some type of bounce, or oil could find itself falling hard. At this point, it’s probably prudent to stay on the sidelines and wait for a little bit of clarity.
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