Quarterly Outlook
Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?
John J. Hardy
Chief Macro Strategist
Technical Analyst, Saxo Bank
Summary: Brent and WTI Crude oil in uptrends testing key resistance levels. A break above could fuel a 5% rally higher. Medium-term falling trendlines broken
Brent Crude oil is testing the resistance at around 83. A close above could fuel another move higher towards 87-88.
However, a few days of range trading between 78 and 83 could be seen before next attempt to break higher.
To reverse the bullish picture a close below 78.19 is needed.
From the weekly chart Brent has broken above its upper medium-term falling trendline. The declining 55 weekly Moving Average will provide some resistance but no strong resistance until around 87-88.
WTI is testing resistance at around 79.18. A close above is likely to send WTI to test resistance at around 83.50.
To reverse the bullish trend a close below 73.84 .
Medium-term (weekly chart) WTI has closed above upper falling trendline and seems on course to test the 83.50 resistance. The declining 55 Moving Average will provide some resistance, however.