The price of Brent crude oil continues to grow since mid-September: in less than a month, quotes went up by USD 10 per barrel.
Such a rapid growth is caused by an increase in demand for “black gold” and a fall in the volume of supply. Now oil is becoming more expensive in anticipation of US sanctions against Iran, as well as amid the fall in production and a reduction in the number of active drilling rigs in the United States. In the middle of last week, the instrument reached a new high at 86.60, after which it corrected downwards. Also, the dollar declined slightly, which made it possible for the energy carrier to go up.
The main releases that may affect the rate of the American currency, and hence the price of oil, will be released on Thursday and Friday: namely, data on the inflation, labor market, and major US indices.
Support and resistance
In the short term, a lateral consolidation is expected after significant growth. In the future, the price of oil should be corrected amid a strengthening dollar and falling energy demand. The trend will remain upward, but in the short term, a downward correction may develop from the current level or from 86.20, 86.60.
Technical indicators continue to show a buy signal: MACD indicates growth of volumes of short positions, and Bollinger Bands on H4 are rearranging downwards.
Support levels: 83.00, 81.50, 80.50, 79.50, 78.30, 77.70, 75.50.
Resistance levels: 86.20, 86.60, 87.00, 87.70, 88.30, 90.00.
Short positions may be opened within the downward correction from the current level with targets in the area of 77.70-75.30 and stop loss at 87.00.
Brent Crude Oil
|Take Profit||77.70, 75.30|
|Support levels||75.50, 77.70, 78.30, 79.50, 80.50, 81.50, 83.00, 86.20, 86.60, 87.00, 87.70, 88.30, 90.00|
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