FxWirePro: Brent crude bounces back on hammer after attacks on Saudi tankers – Uphold long hedges

Brent crude oil futures are vigorously spiking today at $72.75 levels a barrel by 13:08 GMT, although bears attempted to nudge down from the last 3 consecutive weekly loss, bulls managed to find some sort of support at $69.23 levels.

Technically, hammer pattern has been traced out at $71.770 levels, ever since then, bulls seem to be back in business (refer daily chart).

Back to back shooting stars which are bearish patterns are coupled with overbought pressures had signaled by the momentum oscillators hampered previous bullish sentiments (refer weekly plotting).

As a result, (from 24th April), we saw little apprehensions among buying sentiments after shooting star formation but we have raised caution in our previous post that the decisive break-out above channel resistance (on the 4H chart) could expose more upside traction (refer 4H chart). As per that indication, bulls are making bullish prospects.

Overall, 

As the crude oil market has sensed some sort of renewed pressure this morning on the above-mentioned geopolitical issues and especially after Attack on Saudi Tankers, long hedges were advocated by adding longs in Brent crude futures contracts of mid-month tenors with a view of arresting further upside risks, we continue to uphold the same positions.

Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at 59 levels (which is bullish), hourly USD spot index was at -125 (highly bearish) while articulating at (13:22 GMT). 

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex