If we were to break down below the $75 level, that would obviously be a very negative turn of events, opening up a move down to the $72.50 level. On the other hand, to the upside we could bounce all the way to the $80 level and still be just below the 200-Day EMA, so this may be setting up some type of surprise bounce.
Brent Crude Oil Technical Analysis
Brent markets also are looking to find some type of relief during the trading session, as they are hanging around the $80 level and buyers are starting to step in. The question now is whether or not they can make the market turnaround completely, or if this is just a little bit of profit-taking. Either way, I think a bounce from here does make a certain amount of sense, but I would not get married to the position, because quite frankly it could turn around quite quickly. Breaking down below the lows of the Wednesday session would be very negative, opening up a move down to the $77.50 level.
Regardless, you need to be very cautious with your position sizing, mainly due to the fact that there are so many moving pieces at the moment and of course the geopolitical situations in the Middle East are paramount currently. While they have not gotten worse, they aren’t getting better so a shock announcement or move by somebody in the region could send oil markets $10 higher in the blink of an eye.
For a look at all of today’s economic events, check out our economic calendar.