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Brent Crude Oil Technical Analysis - Brent Crude Oil Trading: 2022-08-30
Brent Crude Technical Analysis Summary
Above 102
Buy Stop
Below 89,5
Stop Loss
| Indicator | Signal |
| RSI | Buy |
| MACD | Buy |
| MA(200) | Buy |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Bollinger Bands | Neutral |
Brent Crude Chart Analysis
Brent Crude Technical Analysis
On the daily timeframe, BRENT: D1 is moving towards the upper border of the price channel and has broken through the 200-day moving average line. Some indicators of technical analysis have formed signals for a further increase. We do not rule out a bullish movement if BRENT: D1 rises above its most recent high of 102 (or above the 104 upper Bollinger band). This level can be used as an entry point. Initial risk cap is possible below the last 2 down fractals, the 200-day moving average, the lower Bollinger band and the Parabolic signal: 89.5. 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 (89.5) without activating the order (102), 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
According to Bloomberg, the cost of electricity in Germany and France soared to 1,000 euros per MWh (MWh). Will the BRENT quotes continue to rise?
The increase in electricity prices (for 2023) followed the growth of natural gas prices in Europe above $3,500 per thousand cubic meters on Friday on TTF. This is a new maximum for the summer period. The historical maximum of European gas prices was observed at the end of February this year, when they were approaching $3,800 per thousand cubic meters. On Monday, gas quotes on TTF adjusted to $2,870 per thousand cubic meters, but this is also a relatively high level. Theoretically, the demand for oil in Europe may increase against the backdrop of the current situation in the gas and electricity markets, since it can also be used to generate electricity and heat. Note that according to various estimates, the combustion of 1 TOE (Tonne of oil equivalent) can approximately correspond to the production of 11.63 MWh (MWh). In addition, oil quotes may react to the results of the OPEC + meeting, which is expected on September 5. Earlier, representatives of Saudi Arabia announced the likelihood of a reduction in production if necessary to compensate for its possible increase in Libya and Iran.
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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.
