Current trend

The decline of Brent crude oil quotes after a significant, almost uncontrolled growth, was inevitable. The resistance level of 80.50 became a correction.

The reason for the serious decline was a sharp drop in demand for the asset. Additional pressure on the Brent rate is provided by the comments of OPEC+ representatives on the possibility of a gradual resumption of the increase in production volumes under the current agreement, as well as data from the US, indicating the growth of oil production in the country. Yesterday, the price reached a strong support level at 74.30, after which it consolidated above this mark.

Today, market participants will pay attention to preliminary data from the API on a weekly change in oil reserves in the US.

Support and resistance

Now we can identify two potential medium-term channels, both of which are upward. In a narrower and steep channel, the price rested on the lower border, so the probability of a new rising wave from the current level is high. Within a more slope and broad channel, the instrument can go lower to 71.50, 72.65, and renewal of growth is expected from these levels. However, the oil market certainly stabilizes, and in the long term, stable growth of quotes of "black gold" is expected.

Technical indicators confirm the forecast: MACD indicates the preservation of the high volume of long positions, and Bollinger Bands are still directed upwards.

Support levels: 75.00, 74.00, 72.65, 71.50, 70.70.

Resistance levels: 76.35, 77.70, 78.30, 79.50, 80.50, 81.50.

Trading tips

Buy positions may be opened from the current level; deferred long positions to be opened from the levels of 72.65, 71.50 with targets at 81.50, 83.00.

Brent Crude Oil

BuySellSpread
73.0672.97981

Scenario

TimeframeWeekly
RecommendationsBUY
Entry Point75.77
Take Profit81.50, 83.00
Stop Loss70.10
Support levels70.70, 71.50, 72.65, 74.00, 75.00, 76.35, 77.70, 78.30, 79.50, 80.50, 81.50

Alternative scenario

RecommendationsBUY LIMIT
Entry Point72.65, 71.50
Take Profit81.50, 83.00
Stop Loss70.10
Support levels70.70, 71.50, 72.65, 74.00, 75.00, 76.35, 77.70, 78.30, 79.50, 80.50, 81.50
Brent Crude Oil: stable growth in the long term

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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