Brent continue to move within the framework of strong growth and the beginning of the development of the «Triangle» model, as we see the bears could not send the market to work out the «Head and Shoulders» reversal pattern. At the time of the publication of the forecast, the price of Brent crude is $ 43.23 per barrel. Moving averages indicate a short-term bullish trend for oil. Prices have broken the area between the signal lines upwards, which indicates pressure from buyers of “Black Gold” and a potential continuation of the growth of the asset value. At the moment, we should expect an attempt at correction and a test of the support level near the area of $ 44.15 per barrel. Further, the continued growth of the oil rate to the area above the level of 46.65.
Brent Crude Oil Forecast and analysis July 22, 2020
An additional signal in favor of raising 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 upper border of the «Triangle» pattern. Cancellation of the option of rising oil prices will be a fall and a breakdown of the level of 42.05 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 37.05. A confirmation of the rise in quotes will be a breakdown of the resistance level and closing of Brent prices above the level of 45.55.
Brent Crude Oil Forecast and analysis July 22, 2020 imply an attempt to test the support level near the 44.15 area. Further, continued growth with a target above the level of 46.65. 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 42.05. This will indicate a continued decline in quotations to the area below the level of 37.05.
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