All eyes are on the OPEC and other oil producing countries meeting in the end of this week in Vienna. Brent continues to print lower peaks and lower troughs below the short-term downside resistance line, drawn from the highest point in May at around 80.50 mark, but it also trades above the long-term upwards moving trendline, drawn from the 21st of June. Thus, even if we see the price turning down again in the near term, we remain flat with regards to the bigger outlook, especially with the final outcome of the Vienna meeting still looming.
Until the aforementioned resistance line is broken, we remain sceptical about the upside potential. If Brent moves below the 73.70 level, we could start aiming for the 72.20 area, marked by yesterday’s lows. If that area get’s broken again, then the “black gold” could make its way towards the previously mentioned upwards moving trendline for a quick test. This is where the price could stall for a while, waiting until investors decide on the future direction for the commodity.
On the other hand, if the aforementioned break of the resistance line happens, then this could interest more bulls to jump into the action and drive Brent oil towards the 76.70 level, a break of which could lead the commodity towards the 79.10 mark, or even back to the May highs at around 80.50 zone.
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