In the second half of August, the price quickly recovered after a significant decline of previous months.
For two weeks, the price of "black gold" increased by more than USD 7 per barrel. The main catalysts for this movement were the fall in the dollar rate and the growth in demand for energy resources. Additional support for quotes was provided by data from the US Department of Energy: oil reserves in August decreased significantly, along with the number of active drilling rigs.
Today, the price will slowly consolidate within the narrow range due to the celebration of Labor Day in the United States. At the end of the week, there will be data on industrial production, labor market, and change in oil reserves from the US Department of Energy.
Support and resistance
Now the price tends to return to the long-term ascending channel. In case of taking key resistance levels (78.30, 79.50), the price may sharply rise higher on demand and rush to new local highs at the upper border of the channel (85.70, 88.50). The most likely scenario is the price consolidation within the wide lateral channel, so the move down from the key resistance levels is more relevant in the current situation.
Technical indicators confirm the growth forecast: MACD indicates an increase in the volume of long positions, Bollinger Bands on D1 chart are lined up horizontally.
Support levels: 75.35, 76.00, 75.00, 74.00, 72.65, 71.50.
Resistance levels: 78.30, 79.50, 80.50, 81.50, 83.00, 85.70.
Short positions may be opened from the current level with targets at 72.65, 74.00 and stop loss at 79.00.
Brent Crude Oil
|Take Profit||72.65, 74.00|
|Support levels||71.50, 72.65, 74.00, 75.00, 76.00, 75.35, 78.30, 79.50, 80.50, 81.50, 83.00, 85.70|
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