Brent Futures Trade Near Multi-Month High; Upward Sloping Range Holds

Technical analysis of Forex market

Brent futures skyrocketed towards a multi-month high of 74.30 earlier today but are currently moving slightly below this level. The red Tenkan-sen and the blue Kijun-sen lines are flattening below the price action, suggesting a flat bias after the aggressive buying interest. According to the RSI, the market seems to be ready for negative correction as the index is moving sideways in overbought zone, while the stochastic is edging lower after it touched the 80 level.

If the price extends those gains, the next resistance would be faced near the next psychological levels of 75.00 and 76.00.

On the other side, the 72.26 support could attract traders’ attention ahead of the 23.6% Fibonacci retracement level of the upleg from 64.00 to 74.30, near 71.86. Below that, the focus could shift straight to 71.15 and 70.70 taken from the lows on April 18 and April 16 correspondingly.

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Concluding, Brent futures have a bullish profile in the near term as they have been standing within an upward sloping channel over the last month.

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