Current trend

Quotes of Brent crude oil have been going down for five weeks in a row. Today, the instrument is consolidating in a narrow price range as part of a downward correction.

Strong pressure on prices was caused by the US decision to allow South Korea, Japan and India to continue purchasing Iranian oil, despite sanctions. An additional factor was the increase in production from the three largest producers — Russia, Saudi Arabia and the United States.

Today, market participants expect the publication of a list of countries exempted from sanctions on the purchase of Iranian oil. If Turkey and China are on the list, the Brent blend could drop to USD 70 per barrel. Tomorrow at 23:30 (GMT+2), API Weekly Crude Oil Stock will be published.

Support and resistance

On the H4 chart the instrument is trading in the lower part of Bollinger Bands. The indicator is directed downwards, and the price range has widened, pointing to the further decline. MACD is keeping a stable sell signal. Stochastic is approaching the oversold zone from above.

Resistance levels: 73.94, 75.72, 77.15, 78.42, 79.90, 81.64.

Support levels: 71.80, 71.28, 70.35, 69.11, 67.87.

Trading tips

Short positions may be opened from the current level with target at 70.40 and stop loss at 73.12. Implementation time: 1-2 days.

Long positions may be opened above the level of 73.30 with target at 74.00 and stop loss at 73.05. Implementation time: 1-3 days.

Brent Crude Oil

BuySellSpread
67.0166.9380

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point72.65
Take Profit70.40
Stop Loss73.12
Support levels67.87, 69.11, 70.35, 71.28, 71.80, 73.94, 75.72, 77.15, 78.42, 79.90, 81.64

Alternative scenario

RecommendationsBUY STOP
Entry Point73.35
Take Profit74.00
Stop Loss73.05
Support levels67.87, 69.11, 70.35, 71.28, 71.80, 73.94, 75.72, 77.15, 78.42, 79.90, 81.64
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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