- Summary:
- Joe Biden takes office today as the US President, and his promises of expanded stimulus and Yellen's comments are driving crude oil prices higher.
Crude oil price has benefitted from the risky sentiment that has followed the testimony of the incoming US Treasury Secretary, Janet Yellen. Also pushing crude oil prices higher is the hopes of expanded stimulus, as Joe Biden is sworn in today as the next US President. He has promised to deliver on expanded stimulus, and Yellen doubled down on his comments
by asking the US Senate Committee on Finance to act big on the stimulus front.
These comments have put the safe-haven friendly greenback on the back foot, sending Brent crude oil price higher by 1.15% as at the time of writing.
Technical Levels to Watch
Crude oil price on the Brent crude benchmark is now testing the 56.47 resistance. A break above this level will target the 57.47 resistance in the short term. This sets up an opportunity for a double top to form. If price is able to break this level to establish a new near-tern high, then 60.07 becomes the next target and the double top will not form.
On the other hand, if price is rejected at 57.47 with a slight pullback towards 53.99, then a double top is in evolution. It will take a break of the 53.99 support, acting as a neckline to the pattern, to produce a measured move towards 50.64, with 52.38 serving as a potential pitstop to the downside move. This move would also be accentuated by a break of the ascending trendline support that connects the lows of 30 October, 22 December and 6 January.
Brent Crude Daily Chart
