General analysis Brent for 29.12.2021
29.12.2021 15:09
Intraday
General
Current Dynamics
The Brent is trading in the limited price range this week. Yesterday a slight support to the hydrocarbons market was provided by the publication of the weekly API report which reflected the reduction in inventories of the main oil products in the US. According to the U.S. Petroleum Institute, U.S. crude oil inventories declined by 3.09 million barrels over the week, gasoline inventories declined by 320 K barrels, while distillate inventories declined by 720 K barrels.
Oil prices are holding fairly high thanks to positive information about Omicron. The new strain is spreading quite rapidly, but the symptoms are less severe than the Delta strain, with average hospitalization for those infected with Omicron not more than three days. It is now becoming clear that the Eurozone will only consider the introduction of quarantine measures after the New Year holidays. It is also worth noting that China is ready to lower its key interest rate to support small and medium-sized businesses and help the troubled construction sector. It is a positive signal for the oil market, as higher economic activity will be accompanied by rising inflation and energy prices.
Today at 17:30 (GMT+2) the EIA report on weekly change in major US oil products inventories will be released.
Support and resistance levels
On the 4-hour chart, the instrument is correcting at the top of the Bollinger Bands. The indicator is pointing upwards and the price range remains stable, indicating further strengthening of the instrument. MACD histogram is in the positive zone, preserving a buy signal. Stochastic does not give a clear signal to open positions.- Support levels: 73.10, 74.80, 76.45, 77.50.
- Resistance levels: 80.30, 81.80, 83.20, 84.60.
Trading scenarios
- It is possible to open long positions at the current price with a target of 80.20 and a stop loss at 77.30. Implementation period: 1-2 days.
- Short positions should be opened below the level of 77.20 with a target of 75.60 and a stop-loss at the level of 78.05. Implementation period: 1-2 days.