Brent consolidation continues
Brent has been seeing relatively choppy price action over the past three weeks, with price rotating between $51.23 and $53.94. We are currently in the ascendancy following a sharp deterioration into the lower end of the range. As such, further upside seems likely, with an hourly close above $52.72 providing a clue that we are heading towards the $53-$54 mark.
This consolidation takes place at a major resistance area historically and as such, a bullish breakout from here could provide a significant period of upside.
WTI turning higher following sell-off
WTI is similarly on the rise, with yesterday’s weakness providing us with another deep retracement within the $49.53-$52.22 range. An hourly close above $51.06 would provide a bullish short-term view for a move back into the $52 region. Similarly, we are at a crucial area of resistance historically, with a break above $52.05 providing a 15-month high.
As such, it makes sense to simply play the range until we see a breakout, which could spark a sustained period of directional volatility.