Price action on the daily chart of the Brent Oil market is stuck trading in a severe sideways range. Price is stuck at the present time unable to make a sustained move either higher or lower because of this severe boxing as the daily chart shows below;
Boxing is when the price action moves and operates or is stuck caught up in boxes and is super common. The reason for this is because of a lot of the major market rules; Supply & Demand.
Price is dictated to and forms these boxes because of the supply and demand levels. A simple example of this is; price moves higher and is halted at the resistance level and price moves back lower. Price moves into a support level and price reverses back higher. Before you know it, price is running back into the same resistance that it had only recently rejected and the makings of a really clear boxing area are being created.
On the daily chart of the Brent oil price has in recent times made a retracement back higher against the super strong trend lower that was in play for an extended period of time. This pause or consolidation could be price action and the bulls building order flow for a potential new attempt and trying to break higher again.
If price can break higher again and move outside this tight range, a potential new strong trend higher could be on the cards and this could give traders a super early chance to watch the price action clues to hunt for entries into this market.
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Brent Oil Daily Chart
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