Brent continue to move as part of the correction and the formation of the “Head and Shoulders” pattern. At the time of the publication of the forecast, the price of Brent crude oil is $ 68.15 per barrel. Moving averages indicate a short-term bullish trend for oil. However, prices have broken the area between the signal lines up, which indicates pressure from buyers of “Black Gold” and a potential continuation of the rise in the value of the asset already from the current levels. At the moment, we should expect an attempt to develop a correction and test the resistance level near the area of $ 68.35 per barrel. Further, the continuation of the fall in the oil rate to the area below the level of 60.55.
Brent Crude Oil Forecast and analysis May 26, 2021
An additional signal in favor of reducing quotes and prices for Brent oil will be a test of the resistance line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the Head and Shoulders reversal pattern. Cancellation of the option of falling oil prices will be a strong growth and a breakdown of the level of 72.05 dollars 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 74.55. Confirmation of the fall in quotations will be the breakdown of the support level and the closing of Brent prices below 63.35.
Brent Crude Oil Forecast and analysis May 26, 2021 imply an attempt to test the resistance level near the 68.35 area. Further, the continuation of the fall with the target below the level of 60.55. 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 72.05. This will indicate a continued rise in quotations to the area above the level of 74.55.
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