Signal price

Brent Crude Oil Price Update

International benchmark Brent crude oil futures closed higher on Thursday, reversing initial weakness, after the United States announced new sanctions against Iran. This decision reduced all chances of a nuclear agreement between the two countries. The market was also supported by a weaker US dollar and ongoing supply issues.

August Brent crude oil futures settled at $119.81 on Thursday, up $1.30 or +1.09%. The United States Oil Fund ETF (USO) ended at $87.67, up $0.74 or +0.85%.

Analysts said prices were boosted by Washington’s decision to impose sanctions on Chinese, Emirati and Iranian companies that help export Iranian petrochemicals, Reuters reported.

August Brent Crude Oil Daily

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, the trend has been down since the formation of the closing price reversal high on June 14th.

A trade at $125.18 will negate the chart pattern and signal a resumption of the uptrend. A move to $103.89 will alter the main downtrend.

The minor trend is down. This is momentum control. A trade through the nearest minor low at $112.48 will reaffirm the downtrend.

On Thursday, the market stabilized inside a pair of 50% levels at $118.83 and $120.38. On the downside, the closest support is a short-term retracement zone between $114.54 and $112.02.

Daily Swing Chart Technical Forecast

Traders’ reaction to the pair’s 50% levels at $118.83 and $120.38 should determine the direction of August Brent Crude Oil futures early Friday.

Bullish scenario

Holding above $118.83 will indicate the presence of buyers. Breaking above $120.38 could trigger an upside acceleration with $125.18 the next likely target. Breaking through this level will indicate that buying is getting stronger with $127.99 the next target.

Downside scenario

A sustained move below $118.83 will signal the presence of sellers. If that creates enough downside momentum, expect selling to eventually extend to $115.58 followed by the short-term retracement zone from $114.54 to $112.02.