Heads up, oil bulls!

It appears like Brent crude oil is choosing up on upside momentum as soon as extra. How excessive can it go?

Brent Crude Oil (UKOIL) 4-hour Chart by TradingView

Brent crude oil remains to be cruising inside its ascending channel that’s been holding since mid-December final yr.

The commodity worth discovered consumers on the backside of the channel as soon as once more and is now closing in on the mid-channel space of curiosity.

Can it sustain its climb from right here?

Shifting averages are suggesting so, because the 100 SMA remains to be above the 200 SMA to substantiate that the trail of least resistance is to the upside.

Climbing previous the center of the channel on the $86/barrel degree might clear the trail for a transfer as much as the following ceiling round $90/per barrel.

Nevertheless, Stochastic is already hovering across the overbought area to replicate exhaustion amongst consumers and a potential return in bearish vibes. If that’s the case, Brent crude oil might dip again to the channel assist.

Provide issues stemming from the earthquake in Turkey are lifting the commodity worth for now, as damages within the Ceyhan oil terminal halted manufacturing of roughly 1 million barrels per day.

On the identical time, the progress of China’s reopening has lifted demand forecasts, notably from the oil moguls in Saudi Arabia.

Simply be sure you hold shut tabs on market sentiment when buying and selling threat belongings like commodities!

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