Brent Crude Oil: formation of medium-term consolidation

Current trend

The price for Brent Crude oil went into the stage of broad side consolidation.

The instrument was seriously corrected downwards amid increased demand for USD and growth in volumes of oil production and reserves in the US. The price failed to overcome the key resistance level of 67.60, rebounded from it and went down to the levels of 63.25, 64.50. On Wednesday, the US Department of Energy noted an increase in oil reserves in February to 3.019 million barrels. At the end of last week, the instrument slightly adjusted upwards, and today went down again.

Investors should focus on US March data on the change in oil reserves and the labor market.

Support and resistance

In the short term, Brent crude oil may recover to levels of 67.00, 67.60. The instrument may go down again, and the side channel will narrow. In the long term, “black gold” will continue to grow, and the probability of returning to local highs of the end of January (70.10, 70.70) is high. Price may also consolidate in a long-term upward trend, but with a deeper correction movement to 60.00, 59.00 marks, from where a new upward wave will form to local highs which may be renewed.

Technical indicators on D1 chart show mixed signal: MACD indicates a reduction in the volume of long positions, and the signal line tends to zero, Bollinger Bands are narrowing and are directed horizontally.

Support levels: 63.25, 62.70, 61.65, 61.20, 60.00, 59.50, 59.00, 58.20.

Resistance levels: 64.50, 65.75, 67.60, 69.60, 70.10, 70.70, 71.50, 73.30.

Trading tips

Long positions may be opened from the current level; pending orders can be put from the key support levels of 61.65, 60.00, 59.00 with targets at 70.10, 70.70, 73.30 and stop-loss at 58.10.

Brent Crude Oil

Buy Sell Spread
64.19 64.121 69

Scenario

Timeframe Weekly
Recommendations BUY
Entry Point 64.34
Take Profit 70.10, 70.70, 73.30
Stop Loss 59.30
Support levels 58.20, 59.00, 59.50, 60.00, 61.65, 62.70, 63.25, 64.50, 65.75, 67.60, 69.60, 70.10, 70.70, 71.50, 73.30

Alternative scenario

Recommendations BUY LIMIT
Entry Point 61.65, 60.00, 59.00
Take Profit 70.10, 70.70, 73.30
Stop Loss 58.10
Support levels 58.20, 59.00, 59.50, 60.00, 61.65, 62.70, 63.25, 64.50, 65.75, 67.60, 69.60, 70.10, 70.70, 71.50, 73.30

Brent Crude Oil: formation of medium-term consolidation

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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