Brent continue to move within the framework of the correction and formation of the “Double Bottom” reversal model. At the time of publication of the forecast, the price of Brent oil is 74.67 dollars per barrel. Moving averages indicate the presence of a short-term bearish trend in oil. Prices broke the area between the signal lines down, which indicates pressure from sellers of “Black Gold” and a potential continuation of the decline in the asset’s value from current levels. At the moment, we should expect demand for the development of a decline and a test of the support level near the area of 72.55 dollars per barrel. Further, a rebound upwards and a continuation of the growth of the oil price in the region of the higher level of 87.45.
Brent Crude Oil Forecast for May 16, 2023
A test of the support line on the relative strength indicator (RSI) will be an additional signal in favor of the increase in quotes and prices for Brent oil. The second signal will be a rebound from the lower border of the “Double Bottom” reversal model. A fall and breakdown of the level of 68.05 dollars per barrel will cancel the option of an increase in oil prices. This will indicate a breakdown of the support area and the continuation of the fall of BRENT quotes to the area below the level of 64.05. A breakdown of the resistance area and the closing of Brent prices above the 77.65 level will confirm the growth of quotes, which will indicate a breakdown of the upper border of the descending channel.
Brent Crude Oil Forecast for May 16, 2023 suggests a demand for a test of the support level near the area of 72.55. Further, the continuation of oil growth with the goal of a higher level of 87.45. A test of the trend line on the relative strength indicator will favor the rise of the asset. A fall and breakdown of the level of 68.05 will cancel out the option of a rise in the price of Brent oil. This will indicate a continuation of the fall in quotes to the area below the level of 64.05.
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