BRENT finish the trading week near the area of $ 78.92 per barrel. And it continues to move within the correction and the bullish channel. However, the potential is already visible for the formation of a large “Head and Shoulders” reversal pattern, which could send the oil chart below $ 50 per barrel. Moving averages indicate a bullish trend. Prices moved up from the area between the signal lines, which indicates pressure from buyers of raw materials and a potential continuation of the rise. At the moment, we should expect an attempt to develop growth and test the resistance area near the level of 79.55. Then, it is worth considering a rebound downward and the continuation of the fall in oil to the area below the level of $ 50.45 per barrel.
BRENT Weekly Forecast January 3 — 7, 2022
An additional signal in favor of a decline in oil quotes this week will be a test of the resistance line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the ascending channel, which was broken down by the bears. Cancellation of the option of falling quotes and BRENT oil prices in the trading week January 3 — 7, 2022 will be a strong growth and a breakdown of the level of 86.55. This will indicate a breakdown of the resistance area and continued growth of oil to the area above the level of 92.05. With the breakdown of the support area and closing of quotations below the level of 60.05, we should expect confirmation of a fall in the BRENT oil price, which will indicate the beginning of the “Head and Shoulders” pattern.
BRENT Weekly Forecast January 3 — 7, 2022 therefore suggests an attempt to test the resistance area near the 79.55 level. Where can we expect a rebound and an attempt to drop oil with a potential target at the level of 50.45. An additional signal in favor of a decline in oil prices will be a test of the trend line on the relative strength index (RSI). Cancellation of the fall option will be a strong growth in prices and a breakdown of the 86.55 area. This will indicate a breakdown of the resistance area and a continuation of the rise in oil prices with a target above 92.05.
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