Brent Crude Oil: staying in trend

Current trend

The oil price continues its ascent: since the beginning of December last year, the barrel of Brent gained more than USD 8.

At the beginning of this year, the trend continued and today the price has already risen above USD 69 per barrel. Such a significant increase signals the stabilization of the situation on the oil market: demand is gradually increasing, and the supply is declining due to the adopted by OPEC+ agreement on the reduction of production.

It should be noted that even the market situation contributes to the growth of oil prices: at the end of last year and the beginning of the current, US dollar fell significantly, which gave an impetus to the growth of commodities.

Special attention at the end of the week should be paid to the data on major indices and retail sales in the UK.

Support and resistance

There is a possibility to maintain the upward momentum and reach the price tag of USD 70 per barrel for the first time in two years. In future, the price is expected to move to the long-term consolidation stage in the channel of 65.00-70.10. But it is worth noting that the current rapid upward trend tells us about the possibility of oil to return to price marks even at USD 90.00-100.00 per barrel in the long term.

In view of this, long positions on the trend are the main scenario. Technical indicators support the forecast for long-term growth, MACD points to a rapid growth in the volume of long positions, and the Bollinger Bands are directed upward.

Support levels: 68.00, 67.75, 67.00, 65.75, 64.50, 63.25, 61.20.

Resistance levels: 70.10, 70.70, 71.50, 72.00, 73.30, 75.00.

Trading tips

In this situation, long positions may be opened at the current level; pending orders can be put at the strong support levels of 68.00, 67.00 with targets at 71.50, 75.00 and stop-loss at 65.10.

Brent Crude Oil

Buy Sell Spread
68.875 68.793 82

Scenario

Timeframe Weekly
Recommendations BUY
Entry Point 68.98
Take Profit 71.50, 75.00
Stop Loss 65.10
Support levels 61.20, 63.25, 64.50, 65.75, 67.00, 67.75, 68.00, 70.10, 70.70, 71.50, 72.00, 73.30, 75.00

Alternative scenario

Recommendations BUY LIMIT
Entry Point 68.00, 67.00
Take Profit 71.50, 75.00
Stop Loss 65.10
Support levels 61.20, 63.25, 64.50, 65.75, 67.00, 67.75, 68.00, 70.10, 70.70, 71.50, 72.00, 73.30, 75.00

Brent Crude Oil: staying in trend

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