Brent continue to move within the framework of growth after a strong downward correction. At the time of the publication of the forecast, the price of Brent crude oil is $ 41.57 per barrel. Moving averages indicate a short-term bearish trend for oil. Prices are again testing the area between the signal lines, which indicates pressure from the sellers of “Black Gold” and a potential continuation of the fall in the value of the asset already from the current levels. At the moment, we should expect an attempt at correction and a test of the support level near the area of $ 40.05 per barrel. Further, the continued growth of the oil rate to the area above the level of 45.15.
Brent Crude Oil Forecast and analysis October 7, 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 confirmation 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 38.35 dollars 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 35.55. Confirmation of the growth of quotations will be the breakdown of the resistance level and the closing of Brent prices above the level of 43.15, which will indicate a breakdown of the upper border of the descending channel.
Brent Crude Oil Forecast and analysis October 7, 2020 suggests an attempt to below support near 40.05 area. Further, continued growth with a target above the level of 45.15. 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 38.35. This will indicate a continued decline in quotations to the area below the level of 35.55.
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