Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying opportunities are anticipated in a market with declining supply. Traders are also watching for potential economic stimulus from central bank rate cuts, which could lift commodity prices, especially oil. While the oil market is a key indicator of global economic health, its volatility remains a challenge. Overall, there’s a bullish sentiment, albeit with lingering challenges.
XBRUSD – D1 Timeframe
Brent (XBRUSD) on the daily timeframe has just been rejected off the rally-base-drop supply zone, which is in alignment with the trendline resistance, and the bearish array of the moving averages, as well as the 100-day moving average resistance. In light of these confluences, I will be expecting a continuation of the bearish movement with a target at the confluence of the 50-day moving average and the trendline support.
Analyst’s Expectations:
- Direction: Bearish
- Target: $79.13
- Invalidation: $83.60
XTIUSD – D1 Timeframe
XTIUSD (USOIL) has recently reacted to the bearish pressure from the rally-base-drop supply zone around the 88% Fibonacci retracement level. In light of this, I perceive that price could slide further down till it reaches the trendline support, before we get to see a possible continuation of the bullish pressure.
Analyst’s Expectations:
- Direction: Bearish
- Target: $73.83
- Invalidation: $79.65
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
