Current trend

Today, Brent Crude continued to decline amid US readiness to provide sanctions relief for consumers of Iranian oil.

The US authorities are forced to make adjustments to the strategy on the Iranian issue in the run-up to mid-term congressional elections. The high price of oil does not suit Donald Trump, so the presidential administration is considering the possibility of individual relaxation. In addition, the United States is actively using its strategic partner, Saudi Arabia, to put pressure on the hydrocarbon market. Earlier, Saudi Minister of Energy, Industry and Mineral Resources, Khalid al-Falih, made a number of statements according to which his country could increase oil production in November, as it has the necessary capacities for this.

Today, trading on the market is limited on the occasion of Columbus Day celebrations. Tomorrow (at 22:30 GMT+2), API will publish data on the weekly change in reserves of commercial oil in the US. Given the drop in drilling activity, reserves may decline, but now a political factor is a key issue for pricing.

Support and resistance

On H4 chart, the instrument is declining along the lower border of Bollinger Bands, which is the key support level. The indicator is reversing down, and the price range has expanded, reflecting the continuation of the downward trend. MACD histogram started to decline, forming a weak sell signal. Stochastic entered the oversold area; strong buy signal can be formed in 1-2 days.

Support levels: 82.75, 81.45, 80.26, 79.13.

Resistance levels: 83.56, 84.60, 85.57, 86.55.

Trading tips

Short positions may be opened below 82.20 with the target at 80.40 and stop loss at 82.70. Implementation time: 1-2 days.

Long positions may be opened above 83.80 with the target at 86.00 and stop loss at 82.65. Implementation time: 1-3 days.

Brent Crude Oil

BuySellSpread
67.0166.9380

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point82.15
Take Profit80.40
Stop Loss82.70
Support levels79.13, 80.26, 81.45, 82.75, 83.56, 84.60, 85.57, 86.55

Alternative scenario

RecommendationsBUY STOP
Entry Point83.85
Take Profit86.00
Stop Loss82.65
Support levels79.13, 80.26, 81.45, 82.75, 83.56, 84.60, 85.57, 86.55
Brent Crude Oil: general review

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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