Current trend

The price of Brent crude oil has reached the lower limit of the current range amid a drop in demand for energy and the growth of USD.

In early July, the price made one more attempt to test the local high, but, not being able to approach it, fell sharply. The main catalyst for the fall of the instrument was the fixation of long positions at the price peak, which is why the demand for the asset has significantly decreased.

At the same time, the USD rate continues to grow, despite the ambiguous statistics. The volume of oil production in the US continues to increase, and the number of active drilling rigs remains unchanged. This week, investors will focus on releases in key US sectors, as well as data from the US Department of Energy on the oil stock change.

Support and resistance

Technically, the pair fell again to the lower boundary of the long-term ascending channel, after which it rebounded from this level and began to rise. The main scenario will be the price transition to a wide sideways consolidation channel in the range of 79.50–75.00. There is a high probability of changing the trend, after which the instrument either breaks the current high out, or goes into a deeper correction.

The price remains in the ascending channel, so long positions are more preferable. Technical indicators on the D1 chart confirm the outlook for sideways consolidation, MACD indicates a decrease in volumes, and Bollinger Bands lined up horizontally.

Support levels: 75.00, 74.00, 72.65, 71.50, 70.70, 70.10, 69.75, 68.00.

Resistance levels: 76.00, 76.35, 77.70, 78.30, 79.50, 80.50, 81.50.

Trading tips

In this situation, long positions may be opened from the current level with the target at 79.30 and stop loss at 73.50.

Brent Crude Oil

BuySellSpread
71.6171.54466

Scenario

TimeframeWeekly
RecommendationsBUY
Entry Point73.88
Take Profit79.30
Stop Loss73.50
Support levels68.00, 69.75, 70.10, 70.70, 71.50, 72.65, 74.00, 75.00, 76.00, 76.35, 77.70, 78.30, 79.50, 80.50, 81.50
Brent Crude Oil: sideways consolidation

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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