General analysis Brent for 21.10.2021
Current dynamics
On Thursday Brent is going down at the background of profit-taking after the price reached the local highs again. At the same time, the market fundamentals are pointing at the soonest recovery of growth.
According to the U.S. Department of Energy, crude oil stocks decreased by 431 k barrels over the week, gasoline stocks decreased by 5.368 million barrels and distillate stocks decreased by 3.913 million barrels. At the same time, strong demand for petroleum products persists in the U.S., Asia, and Europe. Large economies are forced to buy large volumes of fuel oil to replace coal and natural gas, which are getting more expensive. It is also necessary to note the increase of production volume at oil refineries, but with a high probability in the fourth quarter the necessity of maintenance of industrial enterprises, as well as high prices for energy carriers will limit the supply at the oil market.
Today at 14:30 (GMT+2) the pair's dynamics may be moderately affected by the release of data on the Philadelphia FRB manufacturing activity index and the release on the U.S. labor market.
Support and resistance levels
On the 4h chart, the instrument is testing the Bollinger Band Average, which acts as the key support. The indicator has turned sideways and the price range is not significantly reduced, indicating that a correction is in place. The MACD histogram is holding a buy signal. Stochastic has left the overbought area and maintains a sell signal.
- Support levels: 79.10, 80.75, 82.25, 83.36, 84.35.
- Resistance levels: 85.50, 86.20, 86.85.
Trading scenarios
- Long positions can be opened at the current price with a target of 85.50 and a stop loss at 83.95. Implementation period: 1-2 days.
- Short positions should be opened below the level of 84.00 with a target of 83.10 and a stop-loss at the level of 84.50. Implementation period: 1-2 days.