Since the beginning of October, Brent crude oil quotes lost more than USD 11, breaking down a number of key support levels on its way.
Yesterday, the price of "black gold" plummeted amid growing demand for USD. It is worth noting that the instrument has reached a serious support level of 75.00, which can become a pivot point. The lower border of the long-term channel can be levels of 75.00, 74.00.
In the second half of the week, one should focus on data on changes in oil reserves from the US Department of Energy, as well as on US releases on the labor market, orders for durable goods, and economic growth rates.
Support and resistance
Despite a significant drop during the last three weeks, the instrument maintains an upward trend in the long term. The transition of price to a wide narrowing lateral consolidation within the channel of 74.00–85.00 would be an alternative.
Technical indicators on W1 chart and above still give a buy signal: MACD keeps a high volume of long positions, and Bollinger Bands are directed upwards. In this situation, long positions may be opened from current lows.
Support levels: 75.00, 74.00, 72.70, 71.50, 70.70, 69.75, 68.00, 66.55, 65.00.
Resistance levels: 76.00, 77.70, 78.30, 79.50, 81.50, 83.00, 85.00, 86.60.
Long positions may be opened from the current level with the target at 85.00 and stop loss at 72.40.
Brent Crude Oil
|Support levels||65.00, 66.55, 69.75, 70.70, 72.70, 74.00, 75.00, 76.00, 77.70, 78.30, 79.50, 81.50, 83.00, 85.00, 86.60|
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