The steady rise in Brent prices was replaced by the sharpest fall in the last two and a half years. In early October, “black gold” was trading at 86.60, which is a strong resistance level. After the rebound, the instrument lost $20 in a month and a half. The rate declined rapidly, without any correction attempts. A strong catalyst for the fall was the statistics from EIA, which reflected a significant increase in stocks of raw materials. However, these data could not so seriously affect the dynamics, and the reason for the decline in prices, apparently, is the fall in global oil demand.
This trading week, there is a lack of US key releases, and the instrument volatility should decrease.
Support and resistance
In the long term, the price stays within the upward trend. The current fall should be considered as a correction before a new wave of growth. Until the end of the current year, the instrument may enter the sideways consolidation channel within 63.35–71.50 with the prospect of subsequent growth.
Technical indicators changed the signal to a downward one: the volume of short MACD positions significantly increased, Bollinger bands reversed downwards.
Resistance levels: 68.00, 68.75, 69.75, 70.70, 71.50, 74.00, 75.00.
Support levels: 67.00, 66.55, 65.75, 64.10, 63.35, 60.75.
It is relevant to increase the volumes of long positions from the current level with the targets at 70.70, 71.50 and stop loss 63.80.
Brent Crude Oil
|Take Profit||70.70, 71.50|
|Support levels||60.75, 63.35, 64.10, 65.75, 66.55, 67.00, 68.00, 68.75, 69.75, 70.70, 71.50, 74.00, 75.00|
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