Brent Crude Technical Analysis - Brent Crude Trading: 2022-10-06

Brent Crude Technical Analysis Summary

Above 93,6

Buy Stop

Below 82

Stop Loss

Indicator Signal
RSI Neutral
MA(200) Neutral
Fractals Neutral
Parabolic SAR Buy
Bollinger Bands Neutral

Brent Crude Chart Analysis


Brent Crude Technical Analysis

On the daily timeframe, BRENT: D1 approached the downtrend resistance line. It must be broken up before opening a position. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if BRENT: D1 rises above its latest up fractal: 93.6. This level can be used as an entry point. The initial risk limit is possible below the last lower fractal, 9-month low and the Parabolic signal: 82. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (82) without activating the order (93.6), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis of Commodities - Brent Crude

OPEC+ has decided to cut oil production. Will BRENT quotes continue to rise?

OPEC+ will cut oil production by 2 million bpd starting in November. In addition, the cartel decided to cancel the monthly meetings. The next meeting is scheduled for December 4, 2022. Perhaps in the future OPEC+ will meet once every six months. Saudi Energy Minister Abdulaziz bin Salman said that oil-producing countries need to take into account rising global inflation. He also noted that the real reduction in OPEC+ production could be 1-1.1 million bpd. Recall that some oil-producing countries are already producing less oil than their current quotas. The market reaction to the OPEC+ decision was not very strong, as Western countries are going to contain the rise in oil prices. The US is considering the sale of 10 million barrels of oil from the Strategic Petroleum Reserve in November. Recall that elections to the US Congress will be held on November 8. The European Union plans to limit the price of Russian oil (price cap) as part of a new package of economic sanctions.