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TECHNICALS:
Brent crude is trading at an important long-term rising trendline which acts as a solid support at the moment.
The 1-hour chart shows a nice retracement today, signaling further strength in the price from a technical standpoint. The RSI formed a hidden bullish divergence just before the spike.
CORRELATIONS:
The chart shows the USD index (inversed) and Brent crude. The recent up-move in Brent can be partly explained by the downtrend in the US dollar.
However, notice that Brent is closer to its June highs than the USD is to its June lows, signaling a slight bearish divergence.
THEMES:
Recent reports suggest oil demand to rebound despite the spike In COVID-19 cases.
China's crude oil imports of 11.93 million bpd also hit a record high in June.
UPCOMING ECONOMIC REPORTS:
The US Crude Oil Inventories report is scheduled for release tomorrow (July 08) at 15:30 GMT with a forecast of a -3.2 million barrels. The previous release showed a fall of 7.2 million barrels.
=== SUMMARY ===
I remain bullish on Brent crude as long as it trades above the rising trendline.
Our previous post on Brent suggested taking a long position at the $39 pullback which is in a nice profit so far.
A close above $43.50 paves the road to $50.
TECHNICALS:
Brent crude is trading at an important long-term rising trendline which acts as a solid support at the moment.
The 1-hour chart shows a nice retracement today, signaling further strength in the price from a technical standpoint. The RSI formed a hidden bullish divergence just before the spike.
CORRELATIONS:
The chart shows the USD index (inversed) and Brent crude. The recent up-move in Brent can be partly explained by the downtrend in the US dollar.
However, notice that Brent is closer to its June highs than the USD is to its June lows, signaling a slight bearish divergence.
THEMES:
Recent reports suggest oil demand to rebound despite the spike In COVID-19 cases.
China's crude oil imports of 11.93 million bpd also hit a record high in June.
UPCOMING ECONOMIC REPORTS:
The US Crude Oil Inventories report is scheduled for release tomorrow (July 08) at 15:30 GMT with a forecast of a -3.2 million barrels. The previous release showed a fall of 7.2 million barrels.
=== SUMMARY ===
I remain bullish on Brent crude as long as it trades above the rising trendline.
Our previous post on Brent suggested taking a long position at the $39 pullback which is in a nice profit so far.
A close above $43.50 paves the road to $50.
