Brent Crude Oil: trading within the trend

Current trend

Brent is being corrected downwards after the rapid growth in early January. At the beginning of this trading week, the price of “black gold” reached a key resistance level of 70.10, which is the upper limit of the long-term uptrend. Unable to overcome this level, the price bounced off and went down to strong support level at 68.00.

It is worth noting that the US currency remains under pressure, which may cause a new upward wave of Brent. Yesterday negative data on the labor market and the production index came out in the US. Today and at the beginning of the next trading week there are no key releases in the economic calendar that can significantly affect the price of the instrument.

Support and resistance

We consider two possible options for a short-term perspective: a fall to the lower border of the upward channel at 66.55, 65.75 or the formation of a narrowing lateral channel. Technical indicators of higher timeframes give a growth signal: the volume of long positions is still high on the MACD indicator; the Bollinger bands are directed upwards.

Support levels: 68.00, 67.00, 66.55, 65.75, 64.50, 64.00, 63.70, 63.10, 62.50.

Resistance levels: 69.60, 70.10, 70.70, 71.50, 72.00, 72.30, 73.45.

Trading tips

Long positions can be opened at the current level or at the levels of 68.00, 67.00, 66.50 with a target of 70.10 (in the medium term target is 73.00) and a stop loss at 65.90.

Brent Crude Oil

Buy Sell Spread
68.522 68.44 82

Scenario

Timeframe Weekly
Recommendations BUY
Entry Point 68.56
Take Profit 70.10
Stop Loss 67.85
Support levels 62.50, 63.10, 63.70, 64.00, 64.50, 65.75, 66.55, 67.00, 68.00, 69.60, 70.10, 70.70, 71.50, 72.00, 72.30, 73.45

Alternative scenario

Recommendations BUY LIMIT
Entry Point 68.00, 67.00, 66.50
Take Profit 70.10
Stop Loss 65.90
Support levels 62.50, 63.10, 63.70, 64.00, 64.50, 65.75, 66.55, 67.00, 68.00, 69.60, 70.10, 70.70, 71.50, 72.00, 72.30, 73.45

Brent Crude Oil: trading within the trend

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.

Comments

comments