The quotes for Brent crude oil continue to move as part of the development of a correction and the formation of a “Head and Shoulders” reversal pattern. At the time of publication of the forecast, the price of Brent oil is $77.22 per barrel. Moving averages indicate a short-term bearish trend in oil. Prices have broken through the area between the signal lines downwards, which indicates pressure from sellers of Black Gold and a potential continuation of the fall in the value of the asset from current levels. At the moment, we should expect an attempt to develop a correction and a test of the support level near the area of 75.75 dollars per barrel. Next, a rebound upward and continued growth of the oil rate to the area above the level of 88.65.
Brent Forecast for January 5, 2024
An additional signal in favor of an increase in quotes and prices for Brent oil will be a test of the support line on the relative strength indicator (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 in prices and a breakdown of the level of $70.65 per barrel. This will indicate a breakdown of the support area and a continued fall in BRENT quotes to the area below the level of 64.05. Confirmation of the growth of quotations and oil prices will be the breakdown of the resistance area and the closing of Brent prices above the level of 82.45, which will indicate a breakdown of the upper limit of the “Head and Shoulders” reversal pattern.
Brent Forecast for January 5, 2024 suggests an attempt to test the support level near the 75.75 area. Further, oil continues to grow with a target above the level of 88.65. A test of the trend line on the relative strength index (RSI) will support the rise of the asset. Cancellation of the option to increase the price of Brent oil will be a fall and a breakdown of the level of 70.65. This will indicate a continued decline in quotes to the area below the level of 64.05.
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