FXOpen
The XBR/USD chart shows a strong rally in Brent crude oil prices on January 2–3, breaking above $76.20 for the first time since mid-October.
According to Reuters, this surge was driven by:
- Economic stimulus measures in China, including wage increases for public servants and a significant boost in funding through treasury bonds.
- Forecasts of a colder winter in the US and Europe, potentially increasing demand for oil products.
According to technical analysis of the XBR/USD chart, the price broke out of a consolidation pattern (highlighted in blue) that had confined it in late 2024.
However, signs of waning bullish momentum are emerging:
- At point B, the price only slightly surpassed the previous high at point A before reversing downward, indicating buyer weakness.
- A bearish divergence is forming between the RSI indicator and points A and B.
These signals suggest that Brent crude oil prices could be vulnerable to a correction, potentially targeting the lower blue trendline as a support level.
Start trading commodity CFDs with tight spreads (additional fees may apply). Open your trading account now or learn more about trading commodity CFDs with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Nikkei 225 Retreats From Record High
As the chart shows, the Nikkei 225 index (Japan 225 on FXOpen) reached a historic high near 58,500 points on Monday. Bullish sentiment was driven primarily by political developments.
According to media reports, the rally followed the decisive victory
WTI Oil Price Climbs to a Monthly High
As the XTI/USD chart shows, the price per barrel moved above the 4 February peak yesterday, marking its highest level since the start of the month. The bullish sentiment has been driven by geopolitical uncertainty. According to media reports:
Amazon (AMZN) Shares Struggle to Find Support After Weak Report
As the chart shows, Amazon (AMZN) shares have displayed pronounced bearish momentum following the release of a weak earnings report on 5 February:
→ Revenue: $213.4 bn (forecast: $211.4 bn)
→ Earnings per share (EPS): actual $1.95, forecast $1.