Candlestick Analysis
Bears had a cracking opportunity recently to get busy and push a potential double top formation on the ICE Brent Crude chart, but they failed to seize it. Instead, late gains saw the price push up to 96.28 yesterday. With the market bid overnight, and gapping up to open at 96.78 our short and medium-term trends for Brent Crude futures remain in a Neutral to Bullish bias.
This post-close clear-out creates a vital new support zone at 96.00-28. We are essentially sitting right between two key gaps now: yesterday’s high/the overnight pocket and that overhead resistance at 98.06. Which one of these levels cleanly gives way is looking to dictate the market direction for the next leg, but we continue to favour a move through 98.06 to resolve this gap issue.
As this is being written, we have already reached the 98.06 level this morning, so let’s see if the Bulls can turn that resistance level into solid support. If they manage to establish a floor here, the Bulls are firmly in the stronger position to target the upper boundaries.
Market Profile
The 96.00-96.28 area is backed up by the fact that it is yesterday’s VPOCVolume Point of Control – The price where the most volume ... More, which currently is naked below where price is. With the Front Month roll to August, we also have 95.00 as the new 20-day CHVNComposite High Volume Node – “Composite” profiles; tho... More.
Above, the next target in the short term is 100.30, which is Naked VPOCVolume Point of Control – The price where the most volume ... More that sits above.
It is key to note that there are no important resistance levels above now, until we get up to 108.04 & 108.34, where the August contract topped out twice in May. Here is our SkewBar from today.
Jamie Lambert
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Clive Lambert FSTA – FuturesTechs
25 years of institutional expertise in the UK and European Energy Markets and 10-time Technical Analysis award winner. Clive provides industry-standard technical outlook, utilising Market Profile and Candlesticks Analysis for over 100 global trading desks.
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