BRENT complete the trading week near the area of 84.49 dollars per barrel. The asset continues to move as part of the growth and the completion of the formation of the “Wedge” reversal pattern. Moving averages indicate a bearish trend. Prices have broken through the area between the signal lines down, which indicates pressure from sellers of raw materials and a potential continuation of the decline already from current levels. At the moment, we should expect an attempt to develop a bearish correction and test the support area near the level of 76.65. Then, it is worth considering a rebound upwards and the continuation of the growth of oil in the area above the level of 110.65 dollars per barrel.
BRENT Forecast January 16 — 20, 2023
An additional signal in favor of the growth of oil quotes this week 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 “Wedge” reversal pattern. Cancellation of the growth option for quotations and BRENT oil prices in the trading week January 16 — 20, 2023 will be a fall and a breakdown of the level of 65.55. This will indicate a breakdown of the support area and a continuation of the fall of oil to the area below the level of 50.05. With the breakdown of the resistance area and the closing of quotes above the level of 90.05, we should expect confirmation of the rise in the price of BRENT oil, which will indicate the breakdown of the upper border of the “Wedge” model and the beginning of the pattern with targets at the top.
BRENT Forecast January 16 — 20, 2023 suggests an attempt to test the support area near the level of 76.65. Where should we expect a rebound and an attempt to increase oil with a potential target at 110.65. An additional signal in favor of rising oil prices will be a test of the trend line on the relative strength index (RSI). Cancellation of the growth option will be a price drop and a breakdown of the 65.55 area. This will indicate a breakdown of the support area and a continued decline in the price of oil with a target below 50.05.
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