Brent crude oil is trading inside a narrow range!
Will the range support hold for another day today?
I’m checking out the 1-hour chart for clues:
Brent Crude Oil (UKOIL): 1-hour
In case you missed it, U.K. oil prices have been trading between $89.25 and $95.40 since the start of the month.
Technical traders have a chance to take advantage of the chart pattern as UKOIL consolidates near the range support.
Even Stochastic is favoring some buying while it hangs out near its “oversold” levels.Meanwhile, escalating tensions between Russia and the U.S. and its allies are supporting bullish cases for the crude oil benchmark.
Word around is that the EU will be imposing new sanctions against Russia after it launched partial military mobilization AND announced referendums in the Donetsk, Lugansk, Kherson and Zaporiyia regions.
The prospect of further supply disruptions in Russia can help push Brent crude to its 92.25 mid-range levels if not the 95.25 range resistance zone.
Before you buy oil like there’s no tomorrow, you should consider that traders are pricing in rising interest rates across the globe.
The Fed stuck with its hawkish plans with its fresh 75bps rate hike yesterday but other major central banks are expected to follow the Fed’s footsteps.
Higher interest rates will likely weigh on economic activity and limit the demand for crude oil.
Make allowances for risk aversion and global growth concerns possibly dragging Brent crude oil below its established range support!
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