After a significant decrease at the beginning of February, Brent Crude Oil began to grow again. During the last two trading weeks, the instrument has gone up by more than 6 USD per barrel.
The main strengthening catalyst remains the decrease of US currency. However, the upward trend is still relevant, supported by the oil production limitation Agreement of OPEC. On the contrary, USA is increasing the production but this will not provide the oversupply in the market.
Tomorrow February Crude Oil Stock release will be published in the USA, which can bring the volatility into the market. At the end of the trading week, US employment market and building sector releases are expected.
Support and resistance
In the middle term, the strengthening of the upward momentum up to the maximum of the end of January (70.70) is expected, after which the price will enter sideways consolidation. In the second quarter, the growth to new local highs is possible in case that the oil production limitation agreement is still relevant.
Technical indicators give a growth signal, MACD volumes of long positions are rapidly increasing, and Bollinger Bands are pointed upwards.
Resistance levels: 68.00, 69.60, 70.10, 70.70, 71.30, 72.00, 72.50.
Support levels: 66.55, 65.75, 64.50, 63.25, 62.70, 61.50, 61.00, 60.30, 60.00.
It is relevant to increase the volume of long positions at the current level with the target at 70.70 and stop loss at 65.90.
Brent Crude Oil
|Support levels||60.00, 60.30, 61.00, 61.50, 62.70, 63.25, 64.50, 65.75, 66.55, 68.00, 69.60, 70.10, 70.70, 71.30, 72.00, 72.50|
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