FxWirePro: Brent crude’s shooting star develops sloping channel but hammer counters – Uphold long hedges

Brent crude oil futures were edgy today at $70.14 a barrel by 11:08 GMT, although attempting to creep up but heading for a 3rd consecutive weekly loss.

Technically, back-to-back shooting star and spinning top patterns are traced out at $71.702 and $71.267 levels respectively.

These bearish patterns are coupled with overbought pressures signaled by the momentum oscillators hamper the previous bullish sentiments (refer weekly plotting).

Since then (from 24th April), the bearish swings have been sliding through sloping channel after shooting star formation but any decisive break-out above channel resistance most likely to expose more upside traction (refer daily chart).

Overall, crude price trend direction appears to be little dubious for now on the back of escalating trade turmoil between the United States and China outweighed upward pressure from a surprise decline in U.S. inventories of crude too.

As the crude oil market has sensed some sort of renewed pressure this morning on the above-mentioned geopolitical issues, it is advisable to stay long hedged by adding longs in Brent crude futures contracts of mid-month tenors with a view of arresting further upside risks.

Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at 24 levels (which is mildly bullish), hourly USD spot index was at 116 (highly bullish) while articulating at (11:20 GMT). 

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex