The price of Brent Crude Oil continues to grow aggressively throughout the month.
Since mid-December, the price has increased by more than USD 8 per barrel. The main catalysts for growth remain a weak dollar and a fall in supply in the oil market. Few people believed that OPEC + measures to reduce oil production would have a positive impact on the price. But such a significant growth is a confluence of positive circumstances. In the current trading week, an additional push was the negative data on oil reserves and production from the US Department of Energy.
Today special attention should be paid to inflation, retail sales, and US consumer prices index.
Support and resistance
Yesterday, the price of “black gold” reached a new peak of 69.60 dollars per barrel, and then rolled back and fixed at around 68.70. The upward momentum is preserved, but the probability of forming a long downward correction is high, though from the levels of 69.60 and 70.10. The main factor of decline may be the growth in the volume of short positions at the peak and the fixation of long ones. In the future, the price is expected to increase with long-term goals at 75.00, 80.00 dollars per barrel.
Technical indicators on the H4 chart indicate the formation of consolidation, the volume of long positions on the MACD indicator decreases, and the Bollinger Bands are lined up horizontally.
Support levels: 68.00, 67.00, 65.75, 64.50, 63.25, 61.20, 60.75, 60.00, 59.50.
Resistance levels: 69.60, 70.10, 70.70, 71.50, 73.30, 74.00, 75.00.
In this situation, the delayed short positions could be opened, counting on a long correction down with a target of 65.75 and a stop-loss at the level of 70.60.
Brent Crude Oil
|Support levels||59.50, 60.00, 60.75, 61.20, 63.25, 64.50, 65.75, 67.00, 68.00, 69.60, 70.10, 70.70, 71.50, 73.30, 74.00, 75.00|
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