Brent continue to move as part of the correction and the beginning of the development of the «Wedge» model. At the time of the publication of the forecast, the price of Brent crude oil is $ 43.23 per barrel. Moving averages indicate a short-term bullish trend for oil. Prices are testing the area between the signal lines, which indicates pressure from buyers of «Black Gold» and a potential continued growth in the value of the asset. At the moment, we should expect an attempt to grow and test the resistance level near the area of $ 44.55 per barrel. Further, the continuation of the fall in the oil rate to the area below the level of 34.55.
Brent Crude Oil Forecast and analysis August 4, 2020
An additional signal in favor of a fall in quotations and prices for Brent oil will be a test of the trend line on the relative strength index (RSI). The second signal will be a rebound from the breakdown of the lower boundary of the «Wedge» model. Cancellation of the option to lower oil prices will be a strong growth and a breakdown of the level of $ 47.85 per barrel. This will indicate a breakdown of the resistance area and continued growth of BRENT quotes to the area above the level of 53.55. Confirmation of the fall in quotations will be the breakdown of the support level and the closing of Brent prices below 39.55.
BRENT Crude Oil Forecast and analysis August 4, 2020 imply an attempt to test the resistance level near the 44.55 area. Further, the continuation of the fall with the target below the level of 34.55. A test of the trend line on the relative strength index (RSI) will be in favor of the decline. Cancellation of the option to drop the price of Brent oil will be a strong growth and a breakdown of the level of 47.85. This will indicate a continued rise in quotations to the area above the level of 53.55.
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