Weekly Brent Crude Oil Price Prediction - W/C 11 Dec 2023Projected Price Range
The anticipated weekly price range for Brent Crude Oil is expected to fluctuate between $73.46 (Min) and $81.51 (Max).
Contended Price Levels
$78.10 - $81.60 High Volume Node & Resistance line - potential resistance
$76.00 Resistance Line - potential resistance
$73.46 Support Line - potential support
Technical Analysis
Fibonacci Retracement Breakout:
The price is still below the 0.5 level with a resistance line and a HVN just below the breaking point of the 0.5 level. This will be a strong resistance level.
Volume Profile Analysis:
High Volume Nodes (HVM):
Bottom HVM: Signifying an area of good liquidity and a potential resistance region. The price has stalled in this area over the last few weeks.
MACD and Stochastic RSI:
Stoch RSI (Bottom Indicator): The indicator crossed over last week at the overbought level and hence the price decreased. But now it is in the oversold level and this could be a good sign.
MACD (Top Indicator): This indicator has maintained just below the negative region and has refused to move out over the last few weeks. I don't see it going anywhere this week. I believe it will stay for the next few weeks in the same range and may just provide a bullish signal for the short term.
Additional Factors
Prior Resistance ( Top Blue Line):
Just above the Bottom HVM, a blue line represents a prior resistance level.
The blue line that is diagonal across the price is a potential resistance line.
Prior Support (Bottom Blue Line):
There are two support lines just near the current price. Last week the price went near this support zone and found support and didn’t fall through. Both these two blue lines are prior support levels. The bottom support line is extended from the black box you can see on the chart from a prior chart pattern. These will be crucial levels of support and levels to watch if the price breaks though.
Geopolitical Events:
Given the volatile nature of the commodities market, traders are advised to stay vigilant regarding any geopolitical events in the upcoming week, as these events can significantly impact oil prices.
Conclusion
Based on the projected price range and the various technical indicators and analyses, the outlook for Brent Crude Oil appears to be finely balanced. The delineated price levels, including resistance at $78.10-$81.60 and support at $73.46, suggest a narrow range of potential movement.
Technical analyses, such as Fibonacci retracement breakout and volume profile analysis, highlight the significance of specific levels, indicating potential resistance and support zones. The MACD and Stochastic RSI indicators imply a nuanced market sentiment, with the Stoch RSI currently in the oversold region and the MACD signalling a potential short-term bullish trend.
The presence of prior resistance and support lines further emphasises the importance of these levels in the market dynamics, while geopolitical events remain a crucial factor that could significantly impact oil prices in the coming week.
