Brent continue to move as part of the fall and the formation of the ”Wedge” model. At the time of the publication of the forecast, the price of Brent crude oil is $ 78.70 per barrel. Moving averages indicate a short-term bearish trend for oil. Prices have broken the area between the signal lines up, which indicates pressure from buyers of ”Black Gold” and a potential continuation of the growth of the asset value from the current levels. At the moment, we should expect an attempt to develop growth and test the resistance level near the area of $ 79.80 per barrel. Further, the beginning of the fall in the oil rate to the area below the level of 67.45, within the framework of the beginning of the development of the large “Head and Shoulders” reversal pattern on the daily oil chart.
Brent Crude Oil Forecast and analysis January 4, 2022
An additional signal in favor of reducing quotes and Brent oil prices will be a test of the downward trend line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the ”Wedge” pattern. Cancellation of the option of falling oil prices will be a strong growth and a breakdown of the level of $ 83.25 per barrel. This will indicate a breakdown of the resistance area and a continued rise in BRENT quotes to the area above the level of 90.55. Confirmation of the drop in quotations will be the breakdown of the lower border of the bullish channel and the closing of Brent prices below the level of 76.05, which will indicate a breakdown of the lower curtain of the ”Wedge” model and the beginning of the development of this pattern.
Brent Crude Oil Forecast and analysis January 4, 2022 imply an attempt to test the resistance level near the 79.80 area. Further, the continuation of the fall in oil with a target below the level of 67.45. A test of the trend line on the relative strength index (RSI) will be in favor of reducing the asset. Cancellation of the option to drop the price of Brent oil will be a strong growth and a breakdown of the level of 83.25. This will indicate a continued rise in quotations to the area above the level of 90.55.
