Commodities

Brent Crude Facing The Horizontal Resistance Level

Brent Crude (Futures) is standing one step away from $30 level, as it is facing right now the horizontal resistance level 29.77. Brent Crude trades positively with the time OPEC+’s agreement entered into force since the first of May.

Brent Crude trades had witnessed selling pressures in last March and April at the time Coronavirus pandemic reached its top in this period, as many countries governments applied economy shutdown, tourism, travel, which led to retreat the world demand on crude oil.

The “Oil Price War” between the Kingdom of Saudi Arabia and Russia was another reason to see Brent Crude below $20 per barrel. 

When we look at Brent Crude chart – 60 Minutes – we will find Crude Brent reached its lowest level 19.39 since February 2002 on last 22 April 2020. Since that time, Brent Crude went in an upward trend within a bullish channel range to break through the horizontal resistance level 26.09.

At the chart, we can note Brent Crude trades above the bullish channel, which indicates the positivity of the Brent Crude.


Technical Analysis

  • The horizontal support level of Brent Crude is 26.09.
  • The horizontal resistance level of Brent Crude is 29.77.
  • Brent Crude trades above the bullish channel, which indicates to the positivity of Crude Brent.
  • Brent Crude is about to test the horizontal resistance level 29.77.
  • In case Brent Crude breakthrough horizontal resistance level and persistence above it, it will be a positive indicator, where we expect Brent Crude to reach a higher resistance level.
  • In case Brent Crude failed to break through the horizontal resistance level, we expect Brent Crude back to trade-in bullish channel range.
  • In case Brent Crude breaks the support line of bullish channel, we expect Brent Crude to fall to test the horizontal support level 26.09.
  • In case Brent Crude breaks the horizontal support level 26.09 and persistence below this level, it will be a negative indicator, where we expect Brent Crude to reach the lowest support level.

Resistance Level 29.77
Support Level 26.09

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