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Brent Crude Oil Technical Analysis - Brent Crude Oil Trading: 2020-04-06
Brent Crude Technical Analysis Summary
Above 35
Buy Stop
Below 24,5
Stop Loss
| Indicator | Signal |
| RSI | Buy |
| MACD | Buy |
| Parabolic SAR | Buy |
| Fractals | Buy |
| MA(200) | Neutral |
| Bollinger Bands | Neutral |
Brent Crude Chart Analysis
Brent Crude Technical Analysis
On the daily timeframe, Brent: D1 is trying to correct upward after a powerful decline. A number of indicators of technical analysis formed signals for a further increase. We do not rule out a bullish movement if Brent rises above its last maximum and psychological level: 35. This level can be used as an entry point. The stop loss is possible below the last lower fractal, the lower limit of the neutral range, the 18-year minimum and the Parabolic signal: 24.5. After opening the pending order, we move the stop loss following the signals of Bollinger and Parabolic to the next fractal minimum. Thus, we change the potential profit / loss ratio in our favor. After the transaction, the most risk-averse traders can switch to a four-hour chart and set a stop loss, moving it in the direction of trend. If the price overcomes the stop level (24.5) without activating the order (35), it is recommended to delete the order: market sustains internal changes not taken into account.
Fundamental Analysis of Commodities - Brent Crude
On April 6, 2020, an extraordinary OPEC + meeting is to be held to limit the oil production. Will Brent quotes grow?
The American President Donald Trump was the first to talk about the planned discussion on reducing oil production. The United States are interested in rising world prices to maintain the production of their shale oil, which requires significant expenses. Due to global quarantine amid the coronavirus pandemic, Brent quotes fell from $ 70 in January this year to $ 25 per barrel. Moreover, according to the forecasts of most market participants, they should have dropped to $ 20 per barrel and should have kept this level for several months until the pandemic declines. Before the spread of Covid-19, the global oil consumption was about 100 million barrels per day (BPD). Now OPEC + will discuss production cuts. According to various estimates, it can range from a minimum of 6 million BPD to 15 million BPD. Real figures of the oil reduction will determine the dynamics of the Brent quotes. Note that the International Energy Agency estimated a decrease in global demand due to coronavirus at 30 million BPD in the 2nd quarter, which is more than the upper estimate of the expected reduction in OPEC +.
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