Current trend

The price for Brent crude oil remains in the medium-term uptrend. At the end of May, oil quotes were significantly adjusted after a serious growth over the last 3 months.

The instrument lost more than five dollars per barrel amid comments on the possibility of increasing the volume of oil production within the OPEC+ agreement. An additional catalyst was the sale of the asset at the peak of the price of USD 80.50 per barrel. Then quotes went up again but, unable to recover to the highs, returned to the bottom border of the current uplink (76.00). One should also note a serious increase in the US currency, due to which the oil price is pressured.

This week, there are no key releases for the United States, so the strong USD factor will not affect the quotes.

Support and resistance

In the medium term, there is a great chance of the upward trend changing to a lateral consolidation channel. The price will fix within USD 75.00-79.50 per barrel. In the future, a deeper correction and a transition to a flatter upward channel are possible, and the instrument may drop to 74.00, 72.65, 71.50. The long-term upward movement will continue, so in the long run, there should be long positions with targets at 80.50, 81.50, up to 85.70.

Technical indicators on W1 chart continue to confirm growth: MACD indicates the preservation of the high volume of short positions, Bollinger Bands are directed upwards.

Support levels: 76.00, 75.55, 75.00, 74.00, 72.65, 71.50, 70.70.

Resistance levels: 76.35, 77.70, 78.30, 79.50, 80.50, 81.50, 83.30, 84.10, 85.70.

Trading tips

Long positions may be opened from the current level; pending orders can be put from 74.00, 72.65 with targets at 80.50, 81.50, 83.00 and stop-loss at 70.30

Brent Crude Oil

BuySellSpread
81.17781.11265

Scenario

TimeframeWeekly
RecommendationsBUY
Entry Point75.66
Take Profit80.50, 81.50, 83.00
Stop Loss70.30
Support levels70.70, 71.50, 72.65, 74.00, 75.00, 75.55, 76.00, 76.35, 77.70, 78.30, 79.50, 80.50, 81.50, 83.30, 84.10, 85.70

Alternative scenario

RecommendationsBUY LIMIT
Entry Point74.00, 72.65
Take Profit80.50, 81.50, 83.00
Stop Loss70.30
Support levels70.70, 71.50, 72.65, 74.00, 75.00, 75.55, 76.00, 76.35, 77.70, 78.30, 79.50, 80.50, 81.50, 83.30, 84.10, 85.70
Brent Crude Oil: the growth will continue

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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