Brent Crude Oil: general analysis

Current trend

On Tuesday, the price of oil rose after Washington announced its intention to postpone the introduction of trade duties on Chinese goods. The US authorities are ready to postpone the introduction of 10% duties on such categories of goods as laptops, smartphones, game consoles, monitors, some items of clothing and toys. In addition, some Chinese goods will not be taxed for reasons of national security. Today, oil prices were corrected downwards after the publication of poor macroeconomic data from China for July. The greatest negative impact on the instrument was caused by the drop in the growth rate of Chinese industry.

Today at 22:30 (GMT+2) API report on US crude oil stocks will be published. It is predicted that the decline in stocks will slow, which will lead to a short-term correction of the uptrend. At the same time, the easing of tension in US-Chinese trade relations provides long-term support to the hydrocarbon market.

Support and resistance

On the 4-hour chart, a downtrend correction is observed. The instrument reversed downwards from the upper Bollinger band, which acts as a key resistance. The indicator is directed upwards, and the price range has expanded, indicating a continuation of the uptrend. The MACD histogram is in the positive zone, keeping a buy signal. Stochastic left overbought zone, forming a sell signal.

Resistance levels: 61.56, 62.83, 63.65.

Support levels: 60.17, 59.15, 57.65, 56.90, 56.00.

Trading tips

Long positions can be opened from the current level with the target at 63.60 and stop loss 59.40.

Short positions can be opened below the level of 59.40 with the target at 56.90 and stop loss 60.15.

Implementation period: 1–3 days.

Scenario

  • Timeframe

    Intraday

  • Recommendation

    BUY

  • Entry Point

    60.30

  • Take Profit

    63.60

  • Stop Loss

    59.40

  • Key Levels

    56.00, 56.90, 57.65, 59.15, 60.17, 61.56, 62.83, 63.65

Alternative scenario

  • Timeframe

    Intraday

  • Recommendation

    SELL STOP

  • Entry Point

    59.35

  • Take Profit

    56.90

  • Stop Loss

    60.15

  • Key Levels

    56.00, 56.90, 57.65, 59.15, 60.17, 61.56, 62.83, 63.65