Brent continue to move within the correction and the downward channel. There is potential for a head and shoulders reversal pattern to form. At the time of publication of the forecast, the price of Brent oil is $106.06 per barrel. Moving averages indicate a short-term bearish trend in oil. Prices are again testing the area between the signal lines, which indicates pressure from the sellers of “Black Gold” and a potential continuation of the fall in the value of the asset already from current levels. At the moment, we should expect an attempt to develop growth and test the resistance level near the area of 96.85 dollars per barrel. Further, a rebound upwards and continued growth of the oil rate to the area above the level of 124.55.
Brent Crude Oil Forecast and analysis July 21, 2022
An additional signal in favor of the rise in quotes and Brent oil prices will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower boundary 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 91.05 dollars per barrel. This will indicate a breakdown of the support area and a continued fall in BRENT quotes to the area below the level of 80.55. The rise in quotes will be confirmed by a breakdown of the upper boundary of the bearish channel and the closing of Brent prices above the level of 110.05, which will indicate a breakdown of the upper boundary of the Head and Shoulders reversal pattern.
Brent Crude Oil Forecast and analysis July 21, 2022 suggests an attempt to test the support level near the area of 96.85. Further, the continuation of the growth of oil with a target above the level of 124.55. In favor of the rise of the asset, a test of the trend line on the relative strength index (RSI) will come out. Cancellation of the option of growth in the price of Brent oil will be a fall and a breakdown of the level of 91.05. This will indicate a continued decline in quotes to the area below the level of 80.55.
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