Brent continue to move as part of the correction and the formation of the “Triangle” pattern. At the time of the publication of the forecast, the price of Brent crude oil is $ 42.93 per barrel. Moving averages indicate a short-term bullish 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 already from the current levels. At the moment, we should expect an attempt to correct and test the support level near the area of $ 42.05 per barrel. Further, the continued growth of the oil rate to the area above the level of 46.55.
Brent Crude Oil Forecast and analysis October 20, 2020
An additional signal in favor of the growth of 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 the completion of the formation of the “Head and Shoulders” reversal pattern. Cancellation of the option of raising oil prices will be a fall and a breakdown of the level of $ 40.85 per barrel. This will indicate a breakdown of the support area and a continued fall in BRENT quotes to an area below the level of 37.55. Confirmation of the growth of quotations will be the breakdown of the resistance level and the closing of Brent prices above the level of 44.55.
Brent Crude Oil Forecast and analysis October 20, 2020 thus suggests an attempt to below support near 42.05 area. Further, continued growth with a target above the level of 46.55. 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 Brent oil will be a fall and a breakdown of the level of 40.85. This will indicate a continued decline in quotations to the area below the level of 37.55.
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