Brent Oil has risen to its highest level of the day in the past hour as the market looks to join in the risk on move seen in stocks and Gold already today. Price is now testing the top of the Ichimoku cloud on H1 and this has contained any rallies for several weeks now since the OPEC meeting.
Shortly after the OPEC meeting last month price broke below the Ichimoku cloud on H1. Since then this has defined the downtrend with price failing to make a clean break above it.
A closer look reveals how recent tests of this trend identification indicator have provided good selling opportunities. Will this be the case once more or will a break above signal a short term change in trend?
Inventory releases have seen especially large reactions of late and the API number tomorrow night and the DOE on Wednesday could provide interesting trade opportunities for this market.