Brent Crude Oil: general analysis
06 June 2019, 10:03
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 60.55 |
| Take Profit | 59.00 |
| Stop Loss | 61.40 |
| Key Levels | 59.00, 60.60, 63.40, 64.00 |
Current trend
Oil prices continue to decline. The closest support level is at 60.60.
The market is under pressure of poor US hydrocarbon stocks data. So, last week the figure rose by 6.77 million barrels against the forecast of –0.85 million. Gasoline reserves also added 3.21 million, although it was expected no more than 0.63 million. On the other hand, from the further fall of the “black gold” market is prevented by geopolitical factors. The unstable situation in the Middle East and the reduction of supplies from Iran and Venezuela will still support quotes for some time. According to the latest data, oil exports from Venezuela in May fell by 17%: India and some US refineries reduced their purchases due to sanctions. Another positive factor is the alleviation of rhetoric about the trade conflict between countries. The President of Mexico recently expressed confidence that his country will be able to resolve all disputed issues with the United States, and the duties that it plans to introduce after June 10 will not be involved. As for China, the authorities also hope for a thaw in relations between the two countries. A possible meeting of two heads of state will be held at the G20 summit, which will be held in Japan this month.
Special attention should be paid to the Friday release by the number of drilling rigs in the United States.
Support and resistance
Stochastic is at 35 points and does not give signals for opening trade deals.
Resistance levels: 63.40, 64.00.
Support levels: 60.60, 59.00.
Trading tips
Short positions can be opened after the breakdown of the level of 60.60 with the target at 59.00 and stop loss 61.40.
Oil prices continue to decline. The closest support level is at 60.60.
The market is under pressure of poor US hydrocarbon stocks data. So, last week the figure rose by 6.77 million barrels against the forecast of –0.85 million. Gasoline reserves also added 3.21 million, although it was expected no more than 0.63 million. On the other hand, from the further fall of the “black gold” market is prevented by geopolitical factors. The unstable situation in the Middle East and the reduction of supplies from Iran and Venezuela will still support quotes for some time. According to the latest data, oil exports from Venezuela in May fell by 17%: India and some US refineries reduced their purchases due to sanctions. Another positive factor is the alleviation of rhetoric about the trade conflict between countries. The President of Mexico recently expressed confidence that his country will be able to resolve all disputed issues with the United States, and the duties that it plans to introduce after June 10 will not be involved. As for China, the authorities also hope for a thaw in relations between the two countries. A possible meeting of two heads of state will be held at the G20 summit, which will be held in Japan this month.
Special attention should be paid to the Friday release by the number of drilling rigs in the United States.
Support and resistance
Stochastic is at 35 points and does not give signals for opening trade deals.
Resistance levels: 63.40, 64.00.
Support levels: 60.60, 59.00.
Trading tips
Short positions can be opened after the breakdown of the level of 60.60 with the target at 59.00 and stop loss 61.40.
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