Brent Crude Oil: general analysis
03 July 2019, 09:42
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY |
| Entry Point | 63.30 |
| Take Profit | 65.00 |
| Stop Loss | 62.80 |
| Key Levels | 61.45, 63.00, 64.20, 65.00 |
Current trend
Oil is trading at the support level of 63.00. If the price consolidates below it, the next target will be the level of 61.45.
Yesterday, a regular meeting of OPEC took place, where it was decided to extend the agreement to reduce energy production for another 9 months. Thus, the countries that approved it will continue to produce "black gold" according to a quota or not more than 1.2 million barrels per day. The Committee also considered a draft on a long-term charter between countries to establish a balance in the market by reducing or increasing production. The project was supported by the participants but then it must be officially signed by the governments of the countries. This solution is likely to support the instrument. Yesterday, data on US oil reserves were also published, which fell by 5 million to 469.5 million barrels, while analysts predicted a decline of only 3 million. Gasoline reserves fell by 837K compared to the forecast of 2.2 million. As for distillates, they also decreased by 1.7 million, which is also a positive factor for quotations.
Today, statistics on energy reserves from the Energy Information Administration will be published.
Support and resistance
Stochastic is at the level of 11 points and signals a possible correction.
Resistance levels: 64.20, 65.00.
Support levels: 63.00, 61.45.
Trading tips
Long positions can be opened from the current level with the target at 65.00 and stop loss 62.80.
Oil is trading at the support level of 63.00. If the price consolidates below it, the next target will be the level of 61.45.
Yesterday, a regular meeting of OPEC took place, where it was decided to extend the agreement to reduce energy production for another 9 months. Thus, the countries that approved it will continue to produce "black gold" according to a quota or not more than 1.2 million barrels per day. The Committee also considered a draft on a long-term charter between countries to establish a balance in the market by reducing or increasing production. The project was supported by the participants but then it must be officially signed by the governments of the countries. This solution is likely to support the instrument. Yesterday, data on US oil reserves were also published, which fell by 5 million to 469.5 million barrels, while analysts predicted a decline of only 3 million. Gasoline reserves fell by 837K compared to the forecast of 2.2 million. As for distillates, they also decreased by 1.7 million, which is also a positive factor for quotations.
Today, statistics on energy reserves from the Energy Information Administration will be published.
Support and resistance
Stochastic is at the level of 11 points and signals a possible correction.
Resistance levels: 64.20, 65.00.
Support levels: 63.00, 61.45.
Trading tips
Long positions can be opened from the current level with the target at 65.00 and stop loss 62.80.
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