BRENT CRUDE OIL Analysis Report With Charting Trends – 04 September 2023
04 Sep 2023
BRENT CRUDE OIL: Oil prices decline; The producers to set outline future output levels.
Oil prices slightly declined on Monday, giving up some of the previous week’s significant gains but still trading close to three-week highs due to predictions that major producers will maintain tight supply.
U.S. oil futures were trading 0.2% lower at $85.42 a barrel by 05:05 ET (09:05 GMT), while the Brent price was down 0.2% at $88.42.
A significantly larger-than-expected drop in U.S. stocks helped both contracts conclude last week at their highest levels in more than half a year, with the Brent contract rising by just under 5% and the WTI contract by over 6%.
More importantly, it is anticipated that Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries, will soon decide over whether to continue a voluntary one million barrel per day oil production cut into October.
Chinese trade data are due on Thursday. Traders will be looking for signs of rising crude consumption as an indicator of an expanding economy.
Exponential Moving Average
- EMA 5: The 5-day EMA stands at 87.96, indicating a Buy signal.
- EMA 20: The 20-day EMA is at 86.02, signaling a Buy sentiment.
- EMA 50: The 50-day EMA currently sits at 84.95, suggesting a Buy indication.
Simple Moving Average
- SMA 5: The 5-day SMA shows a value of 88.05, reinforcing the Buy recommendation.
- SMA 20: With a value of 85.55 the 20-day SMA also supports a Buy sentiment.
- SMA 50: The 50-day SMA registers at 84.71, affirming a Buy indication.
RSI (Relative Strength Index)
The RSI, calculated over a 14-day period, stands at 77.21, signifying a positive signal.
The %K value of the Stochastic Oscillator suggests a Neutral stance.
Resistance And Support Levels
- Resistance: The resistance level is observed at 88.86
- Support: The support level is identified at 87.22
Summary And Trade Suggestions
In summary, the technical analysis of Brent Crude Oil points towards a Buy sentiment. Considering the indicators, moving averages, and oscillators, it seems favorable for traders to enter a long position.
- Entry Point: 89.54
- Take Profit: 92.12
- Stop Loss: 87.49