Brent continue to move as part of a downward correction and the formation of a “Head and Shoulders” reversal pattern. At the time of the publication of the forecast, the price of Brent oil is $90.87 per barrel. Moving averages indicate the presence of a short-term bullish trend in oil. Prices have broken through the area between the signal lines down, 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 a correction and test the support level near the area of 86.55 dollars per barrel. Further, a rebound upwards and the continuation of the growth of the oil rate to the area above the level of 115.00.
Brent Crude Oil Forecast and analysis October 20, 2022
An additional signal in favor of the growth of quotations and prices for Brent oil 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 80.55 dollars per barrel. This will indicate a breakdown of the support area and a continuation of the fall of BRENT quotes to the area below the level of 73.55. The growth of quotes will be confirmed by a breakdown of the resistance area and closing of Brent prices above the level of 99.55, which will indicate a breakdown of the upper border of the reversal pattern and the beginning of the pattern with targets at the top.
Brent Crude Oil Forecast and analysis October 20, 2022 suggests an attempt to test the support level near the area of 86.55. Further, the continuation of the growth of oil with a target above the level of 115.00. 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 to increase the price of Brent oil will be a strong growth and a breakdown of the level of 80.55. This will indicate a continued fall in quotes to the area below the level of 73.55.
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