Brent continue to move as part of the correction and the formation of the “Head and Shoulders” reversal pattern. At the time of publication of the forecast, the price of Brent oil is $83.71 per barrel. Moving averages indicate a short-term bearish 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 resistance level near the area of 85.05 dollars per barrel. Further, a rebound down and a continuation of the fall in the oil rate to the area below the level of 72.05.
Brent Crude Oil Forecast February 22, 2023
An additional signal in favor of lower quotes and Brent oil prices 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 91.45 dollars per barrel. This will indicate a breakdown of the resistance area and continued growth of BRENT quotes to the area above the level of 96.65. The fall in quotes will be confirmed by a breakdown of the support area and closing of prices for Brent below the level of 78.05, which will indicate a breakdown of the lower boundary of the “Head and Shoulders” reversal pattern and the beginning of the pattern with targets below.
Brent Crude Oil Forecast February 22, 2023 suggests an attempt to test the resistance level near the area of 85.05. Further, the continuation of the fall of oil with a target below the level of 72.05. A test of the trend line on the relative strength index (RSI) will come out in favor of the asset’s decline. Cancellation of the option of falling Brent oil prices will be a strong growth and a breakdown of the level of 91.45. This will indicate a continued rise in quotes to the area above the level of 96.65.
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