Current trend

Oil continues to strengthen and is currently trading near 4-year highs. The main catalyst for the growth of the market is US sanctions against Iran.

November 4, anti-Iran sanctions will come into effect, which will create a supply shortage of 1.5 million barrels per day in the market. OPEC and its allies reported a shortage of capacity to increase production. The format of OPEC+ is advantageous for the shortage of proposals on the market for high oil prices consolidation. In addition, today, US Energy Secretary Rick Perry rejected the possibility of using strategic reserves to compensate for the Iranian market share. Thus, the energy carrier has a high potential for growth, but market participants are concerned by a possible increase in production in Saudi Arabia by 0.55 million barrels per day.

Baker Hughes US Oil Rig Count release is due today at 19:00 (GMT+2). If the number of rigs exceeds 866 units, then oil will step off from local highs, reversing downwards.

Support and resistance

On the 4-hour chart, the instrument tests the upper border of Bollinger bands, which is the key resistance level. The indicator is directed horizontally, and the price range is narrowed, indicating the correction of the uptrend. MACD histogram is in the positive area, keeping a buy signal. Stochastic is approaching the overbought area, there is no signal for entering the market.

Resistance levels: 81.70, 82.34.

Support levels: 80.98, 79.34, 78.46, 77.18, 75.50.

Trading tips

Long positions can be opened from the current level with the target at 82.35 and stop loss 80.90. Implementation period: 1–2 days.

Short positions can be opened below 81.10 with the target at 79.50 and stop loss 81.65. Implementation period: 2–4 days.

Brent Crude Oil

BuySellSpread
67.0166.9380

Scenario

TimeframeWeekly
RecommendationsBUY
Entry Point81.50
Take Profit82.35
Stop Loss80.90
Support levels75.50, 77.18, 78.46, 79.34, 80.98, 81.70, 82.34

Alternative scenario

RecommendationsSELL STOP
Entry Point81.00
Take Profit79.50
Stop Loss81.65
Support levels75.50, 77.18, 78.46, 79.34, 80.98, 81.70, 82.34
Brent Crude Oil: general analysis

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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