The oil price moves within a wide sideways channel. In the second half of August, the instrument significantly increased due to the weakness of USD, growth in demand for energy, as well as data on declining production volumes and the reduction of active drilling stations. However, "black gold" could not overcome the level of 79.50 dollars per barrel, reversed and went down. Now the price consolidates within the narrower sideways channel of 75.50–79.50.
This week, the US will release a number of key publications, which could significantly affect USD and increase the dynamics of oil prices. Data on inflation, retail sales, production orders, changes in oil reserves and the number of active drilling, according to the US Department of Energy in September, are worth traders’ attention.
Support and resistance
In the medium term, the price will fall to the levels of 75.00, 72.65, and 70.70, after which it will reverse and form an upward wave to local highs. The trend remains upwards, and long positions are more preferable.
Technical indicators reflect a high probability of price growth, MACD keeps high volumes of long positions, and Bollinger bands are directed upwards.
Resistance levels: 77.70, 78.30, 79.50, 80.50, 81.50, 83.00.
Support levels: 76.35, 76.00, 75.00, 74.00, 72.65, 71.50, 70.70.
It is relevant to open pending long positions from the levels of 75.00, 74.00, 72.65, and 70.70 with the target at 80.50 and stop loss 70.10.
Brent Crude Oil
|Entry Point||75.00, 74.00, 72.65, 70.70|
|Support levels||70.70, 71.50, 72.65, 74.00, 75.00, 76.00, 76.35, 77.70, 78.30, 79.50, 80.50, 81.50, 83.00|
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