Brent continue to move as part of the correction and the formation of an inverted head and shoulders pattern. At the time of the publication of the forecast, the price of Brent crude oil is $ 70.40 per barrel. Moving averages indicate a short-term bullish trend for oil. Prices have broken the area between the signal lines down, which indicates pressure from sellers of “Black Gold” and a potential continuation of the fall in the value of the asset already from the current levels. At the moment, we should expect an attempt to develop a decline and a test of the support level near the area of $ 69.75 per barrel. Further, the continued growth of the oil rate to the area above the level of 77.85.
Brent Crude Oil Forecast and analysis August 5, 2021
An additional signal in favor of raising quotes and prices for Brent oil will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the “Head and Shoulders” reversal pattern. Cancellation of the option of rising oil prices will be a fall and a breakdown of the level of 69.35 dollars per barrel. This will indicate a breakdown of the support area and a continued fall in BRENT quotes to an area below the level of 65.55. Confirmation of the growth of quotations will be the breakdown of the resistance level and the closing of Brent prices above the level of 75.95.
Brent Crude Oil Forecast and analysis August 5, 2021 imply an attempt to test the support level near the 69.75 area. Further, continued growth with a target above the level of 77.85. A test of the trend line on the relative strength index (RSI) will be in favor of the rise. Cancellation of the growth option for the Brent oil price will be a fall and a breakdown of the level of 69.35. This will indicate a continued decline in quotations to the area below the level of 65.55.
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