COMMENTARY-Oil price struggles despite favorable conditions — TradingView News

The positives sparked an early rebound in the Brent crude contract, but the gains were short-lived and technically the market remains in trouble.

Oil prices drew support from an industry report that showed U.S. crude and fuel stockpiles fell last week, pointing to steady demand. Guidance from US Federal Reserve Chairman Jerome Powell on Tuesday also helped sentiment. These factors are likely to slow down any further decline in oil prices, but Brent charts continue to highlight bearish risk.

Brent rose to $84.87 from $84.00 and settled around $84.34. The price action during the day shows the start of another bounce, but although it is below the 10-hour moving average of $84.56, the risk remains tilted to the downside.

A key day reversal on July 5, a higher high, a lower low and a close below the previous session’s close, set in motion a three-day bearish move. The price broke below the 10- and 100-day moving averages and dipped into its daily Ichimoku cloud.

A minor correction level, taken out of the June 4-July 5 rally of $76.76-$87.95, was reached in the last session at $85.31. The 38.2% Fibonacci retracement of that one-month bull run provides the next bear target at $83.68. The key 50% Fibonacci level and potential bearish trigger point is at $82.36.

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