“Black gold” is trading within a long-term upward trend. Since mid-August, the instrument gained more than 20%, reached key resistance and a local maximum at the level of 86.60 and could not break it. Due to the decrease in oil demand, the price reversed and went down, losing about $8 a barrel in two weeks due to the closing of profitable long positions and growth in short positions. The strengthening of USD at the end of the last and the beginning of this trading week also affected the instrument negatively.
In the near future, there is a lack of key US publications expected, and the dynamics will be due to the trade moods.
Support and resistance
The impulse may develop to the lower border the long-term upward channel at the levels of 75.00, 74.00. After a downward correction, the price will move into a narrowing sideways consolidation for several months, and may further increase up to the level of $100 per barrel in 2019.
Technical indicators confirm the growth: MACD keeps high volumes of long positions, Bollinger bands are directed upwards.
Resistance levels: 79.50, 80.50, 81.50, 83.00, 86.60, 88.50.
Support levels: 78.30, 77.70, 75.00, 75.00, 74.00, 71.50, 70.70, 70.10, 69.30.
It is relevant to increase the volumes of long positions from the level of 75.00, 74.00 with the targets at 83.00, 86.60 and stop loss 71.50.
Brent Crude Oil
|Entry Point||75.00, 74.00|
|Take Profit||83.00, 86.60|
|Support levels||69.30, 70.10, 70.70, 71.50, 74.00, 75.00, 75.00, 77.70, 78.30, 79.50, 80.50, 81.50, 83.00, 86.60, 88.50|
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