Friday at a glance: down on the day: Brent crude oil closed at $83.63 per barrel after ranging between $83.56 and $86.9.
Trend analysis indicates that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Brent crude oil bounced 43 cents away from Fibonacci support at $84.06. Asset volatility analysis shows that Bollinger Bands® shows an indication of recovery: the lower band is at $83.08, a low enough level to, generally, suggest that Brent crude oil is trading below its fair value. Analysis of Brent crude's recent price action suggests ICE Brent crude could begin to recover as it approaches significant support, now $1.14 away from $82.49. Dipping below could be an indication that further losses are ahead.
Overall, the technical outlook suggests Brent crude oil is likely to remain muted for the immediate future, with no clear-cut direction.
Brent crude oil's value drop coincided with the fact that Heating Oil dips 3.58% Friday and closed at $3.36. Crude Oil lost 2.13% Friday and closed at $77.94. Natural Gas retreats 3.89% Friday and closed at $7.31.
Brent crude is now trading 16.74% below its 3-month high of $129.12.