Brent Crude Oil futures are continuing to benefit from the rising tensions between Iran and the west, with Tuesday's rally helping the technical outlook of the market conform to the otherwise news-driven backdrop. Brent surged above key resistance offered up by the top of a Channel Down chart pattern. This pattern is illustrated below on the Autochartist 240-minute completed patterns platform.
This breakout to the upside from the channel is significant in light of the bullish dynamics that may continue to feed speculative buying interest for some time to come. Because this channel has been developing for nearly two months over a roughly $15 per barrel price range, the shift higher and away from the pattern is encouraging for a possible major trend shift towards higher levels.
The projected price for the near term forms a target range between $112.08 and $115.96 per barrel. The high momentum reading of 8 bars that accompanied the breakout is encouraging for a test of the middle of this range. Longer term, the breakout is likely to evolve into new bullish chart patterns with an eventual test of the $120 handle.
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