The oil price may soon fall from today's USD 82.00 to USD 45.00

٢٤ يوليو

Technical Analysis of the oil price (Brent Oil)

Over the past three years, the oil price has established a large head and shoulder formation (cf. chart here), and where a strong technical sell signal will be triggered by a break below the USD 75.00 level.

The oil price (Brent Oil) is also moving within a large symmetrical triangle consolidation formation, and the most common thing about such consolidation formations is a further development in the same direction as the previous development.

Here for the oil price, this means that it is most likely now with an upcoming break down from this large symmetrical triangle consolidation formation that the oil price has moved within in the past year now.

Both according to the aforementioned large head and shoulders formation, and the large symmetrical triangle consolidation formation.

Yes, both of these formations indicate that in the event of a break below USD 80.00 and 75.00, a further decline towards USD 45.00 - 50.00 will be signalled.

What is needed to change the currently very negative technical picture for the oil price will be for it to break through and establish itself above a now very important technical resistance level around USD 88.00 - 90.00.

As the overall technical picture is today, a sharp drop in the oil price is indicated if it now breaks below a very important technical support level at USD 75.00 - 80.00.

In the event of such a break down, strong technical sell signals will be triggered for the oil price, and then a further sharp decline will be signaled to around USD 45.00 - 50.00.

It is therefore well worth keeping a close eye on the oil price going forward here, and new signals about future developments may come within a short time now.