{"id":1797,"date":"2020-12-24T09:01:12","date_gmt":"2020-12-24T09:01:12","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=1797"},"modified":"2021-01-12T10:14:49","modified_gmt":"2021-01-12T10:14:49","slug":"brent-oil-technical-analysis-headed-towards-key-trendline","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/brent-oil-technical-analysis-headed-towards-key-trendline\/","title":{"rendered":"Brent Oil Technical Analysis- Headed Towards Key Trendline"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1797\" class=\"elementor elementor-1797\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-45e5444 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"45e5444\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6d6c40b\" data-id=\"6d6c40b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-808c775 elementor-widget elementor-widget-text-editor\" data-id=\"808c775\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><a href=\"https:\/\/bit.ly\/3mgKrC8\" target=\"_blank\" rel=\"noopener\">Brent<\/a> crude oil is firming above the $50.00 level, as the prospect of continued QE from the US Federal Reserve is helping to underpin the overall bid-tone in the commodity sector. Even bearish news about an unexpected build up in oil inventory has failed to sink Brent below the $50.00 level this week.<\/p><p>If current price action is an indicator of future prices, then Brent crude does not look ready to turn lower yet, and may well be headed towards a new multi-week and multi-month trading high over the coming days.<\/p><p>In the near-term, other downside risks are also looming over Brent crude, such as the new mutant strain of COVID-19 and the prospect of President Trump not signing the proposed $900 billion US stimulus bill into law.<\/p><p>Goldman Sachs has recently given a big call for Brent Crude, with the investment bank noting that they expect Brent to trade at $65.00 next year. Other investment banks are also causing for Brent crude to trade higher than the current price level next year.<\/p><p>The timing of a such a move is unclear, as the prospect of lockdowns in UK, Europe, and the United States in the first quarter on 2021 look increasingly likely. Ongoing lockdowns are likely to be a continued drag on the demand side for Brent crude oil.<\/p><p>The supply side of the equation will be closely monitored by traders and investors, especially since the latest reports of an unexpected build up in oil inventories.<\/p><p>Technical analysis is currently pointing to more upside for Brent Oil, with the $57.00 level highlighted across various time frames as a possible upside target over the coming weeks and months.<\/p><p><strong>Brent Oil Short-Term Technical Analysis<\/strong><\/p><p>Technical analysis on the four-hour time frame shows that an inverted head and shoulders pattern has been activated, following the recent late-November breakout above the $46.90 resistance level.<\/p><p>According to the size of the bullish reversal pattern Brent Crude Oil could be preparing to rally towards the $57.00 resistance area. The pattern remains valid while the price continues to trade above the $36.60 level.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-841d521 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"841d521\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1443166\" data-id=\"1443166\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-06a3512 elementor-widget elementor-widget-image\" data-id=\"06a3512\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/Brent-H4.png\" title=\"\" alt=\"\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-70a1b00 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"70a1b00\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-28b3d0a\" data-id=\"28b3d0a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a2e54bf elementor-widget elementor-widget-text-editor\" data-id=\"a2e54bf\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source by ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2ade34d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2ade34d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ba62bb3\" data-id=\"ba62bb3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e8a944f elementor-widget elementor-widget-text-editor\" data-id=\"e8a944f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Technical analysis also shows that bearish price divergence on the MACD indicator has formed, and extends down towards the $45.00 support area.<\/p><p>It remains to be seen whether Brent crude oil will turn lower from current levels to reverse the negative price divergence, or whether Brent crude will hit the $57.00 to 60.00 resistance area and then stage a reversal.<\/p><p><strong>Brent Oil Medium-Term Technical Analysis<\/strong><\/p><p>Technical analysis on the daily time frame shows that an important long-term trend line is in focus, and is currently located around the $57.00 area. It is certainly interesting that short and medium-term technical analysis is aligning here.<\/p><p>Looking more closely at the trendline in question on the daily time frame, Brent Crude fell by over $40.00 when it was first broken earlier this year, during the COVID-19 inspired market flash crash, meaning that a very important technical test of the key trendline may be about to happen.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7d57410 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7d57410\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-557d536\" data-id=\"557d536\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cc471fc elementor-widget elementor-widget-image\" data-id=\"cc471fc\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/Brent-1D.png\" title=\"\" alt=\"\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d76172f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d76172f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0027e0d\" data-id=\"0027e0d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1b18899 elementor-widget elementor-widget-text-editor\" data-id=\"1b18899\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source by ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0a4104b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0a4104b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b59373c\" data-id=\"b59373c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-de6934c elementor-widget elementor-widget-text-editor\" data-id=\"de6934c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The daily time frame also shows that significant amounts of negative price divergence has formed on the Relative Strength Indicator, and extends down towards the $45.00 region.<\/p><p>According to technical analysis, the $60.00 and $62.00 level offers the strongest form of resistance on the daily time frame if the $57.00 level is broken.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Brent crude oil is firming above the $50.00 level, as the prospect of continued QE from the US Federal Reserve is helping to underpin the overall bid-tone in the commodity sector. Even bearish news about an unexpected build up in oil inventory has failed to sink Brent below the $50.00 level this week. If current [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":1798,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4,9,2,7],"tags":[58,135],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v20.11) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Brent Oil Technical Analysis- Headed Towards Key Trendline - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/brent-oil-technical-analysis-headed-towards-key-trendline\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Brent Oil Technical Analysis- Headed Towards Key Trendline\" \/>\n<meta property=\"og:description\" content=\"Brent crude oil is firming above the $50.00 level, as the prospect of continued QE from the US Federal Reserve is helping to underpin the overall bid-tone in the commodity sector. Even bearish news about an unexpected build up in oil inventory has failed to sink Brent below the $50.00 level this week. If current [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/youtrading.com\/en\/brent-oil-technical-analysis-headed-towards-key-trendline\/\" \/>\n<meta property=\"og:site_name\" content=\"Youtrading UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/YouTradingEnglish\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-12-24T09:01:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-12T10:14:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/GettyImages-1221456634.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"740\" \/>\n\t<meta property=\"og:image:height\" content=\"387\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nathan Batchelor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nathan Batchelor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/youtrading.com\/en\/brent-oil-technical-analysis-headed-towards-key-trendline\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/youtrading.com\/en\/brent-oil-technical-analysis-headed-towards-key-trendline\/\"},\"author\":{\"name\":\"Nathan Batchelor\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/person\/88ce8e6688d6c690a83e6cbeee2eccab\"},\"headline\":\"Brent Oil Technical Analysis- Headed Towards Key Trendline\",\"datePublished\":\"2020-12-24T09:01:12+00:00\",\"dateModified\":\"2021-01-12T10:14:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/youtrading.com\/en\/brent-oil-technical-analysis-headed-towards-key-trendline\/\"},\"wordCount\":549,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/youtrading.com\/en\/#organization\"},\"keywords\":[\"Brent\",\"Goldman Sachs\"],\"articleSection\":[\"Commodities\",\"Insights\",\"Markets\",\"World\"],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/youtrading.com\/en\/brent-oil-technical-analysis-headed-towards-key-trendline\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/youtrading.com\/en\/brent-oil-technical-analysis-headed-towards-key-trendline\/\",\"url\":\"https:\/\/youtrading.com\/en\/brent-oil-technical-analysis-headed-towards-key-trendline\/\",\"name\":\"Brent Oil Technical Analysis- Headed Towards Key Trendline - 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Even bearish news about an unexpected build up in oil inventory has failed to sink Brent below the $50.00 level this week. 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