Oil Breaks Higher with Strong Momentum, Potential Bullish Breakout Ahead

Oil finally breaks higher and with decent momentum

Oil finally breaks higher and with decent momentum

Another strong showing on Friday saw oil prices finally make a significant move higher, with Brent breaking above $77 and ending the series of lower highs in price. There still remain obstacles above but this could be a very significant breakout in the price after such a long period of consolidation.

What’s more there doesn’t appear to be any shortage of momentum behind the move; in fact, it has seemingly increased which could be another bullish signal. The next obstacle for Brent could be $78.50 where it failed in June and appears to be seeing some resistance again. Saudi Arabia and Russia may finally get what they wanted with the recent cuts.

Craig Erlam

Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.

Topics

oil brent Russia consolidation saudi arabia resistance lower highs bullish signal obstacles breaks higher decent momentum strong showing significant move above $77 significant breakout shortage of momentum $78.50 recent cuts.

Oil Breaks Higher with Strong Momentum, Potential Bullish Breakout Ahead

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Oil finally breaks higher and with decent momentum

Craig Erlam

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