Oil prices have been on the rise recently, driven by escalating geopolitical tensions in the Middle East. Fears of supply disruptions are growing as conflicts involving Iran and other key oil-producing nations have intensified. Brent crude is currently trading near $75 per barrel, reflecting a roughly 2-3% increase in early October. The market is also reacting to tightening supply, as U.S. crude inventories have fallen and OPEC+ has continued production cuts
Oil is retesting a previously broken downside resistance of 75, and is still within a second corrective long-term upside wave. A break above 75, could lead potentially to a test of the most important upside resistance 82. A break below 60 will lead to an invalidation of the second wave and a continuation higher. If we take price action in focus it has created descending triangle. Learn to Trade commodities profitably.
The Weekly Oil chart reveals a continuation triangle that is heading toward its apex. At this point, all the positions both buy and sell are in option depending on the price action breakout and taking into consideration a higher geopolitical volatility. Overall support for the downside even if it breaks above 75 is 82 and the final long-term support for a bullish trend invalidation is much lower at 60 which means. Following the price action we need to see a break above 75 for a continuation higher and an extension to 82.
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How to trade this?
It is a fact that a strong upside resistance for Q4 2024 is 82 and If we get a confirmed break above this level we could see a strong upside continuation for 150 in the third long-term upside Elliott Wave. Near-term, both long trades and short trades are in play. Long trade upon a break above 75 with a stop loss below 71 and a short trade upon a break below 70 with a stop loss above 76. For inquiries about account management or copy trading please write to [email protected].
