Brent continue to move as part of the growth and formation of the inverted «Head and Shoulders» model. At the time of the publication of the forecast, the price of Brent crude oil is $ 30.99 per barrel. Moving averages indicate a short-term bearish trend for oil. Prices are testing the area between the signal lines, which indicates pressure from the sellers of Black Gold. At the moment, we should expect an attempt to develop a correction and a test of the support level near the area of $ 24.75 per barrel. Further, the continued growth of the oil rate in the region above the level of 50.05.
Brent Crude Oil Forecast and analysis May 8, 2020
An additional signal in favor of rising quotes and Brent oil prices will be a test of the trend line on the relative strength index (RSI). The second signal will be a rebound from the upper boundary of the downward channel. Cancellation of the option of raising oil prices will be a fall in prices and a breakdown of the level of 17.05 dollars per barrel. This will indicate a breakdown of the support area and the continuation of the fall of BRENT quotes in the area below the level of 10.55. Confirmation of the rise in quotes will be a breakdown of the trend line and closing prices for Brent above the level of 34.05, which will indicate the completion of the formation of the inverted «Head and Shoulders» model.
Brent Crude Oil Forecast and analysis May 8, 2020 suggests an attempt to test the support level near the area of 24.75. Further, the continuation of the rise with a target above the level of 50.05. A test of the trend line on the relative strength index (RSI) will be in favor of the rise. Cancellation of the option to increase the price of Brent oil will be a fall and a breakdown level of 17.05. This will indicate a continued decline in quotations to the area below the level of 10.55.
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