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Brent Crude Oil Technical Analysis - Brent Crude Oil Trading: 2021-05-21
Brent Crude Technical Analysis Summary
Below 65
Sell Stop
Above 70,3
Stop Loss
| Indicator | Signal |
| RSI | Sell |
| MACD | Sell |
| MA(200) | Neutral |
| Fractals | Neutral |
| Parabolic SAR | Sell |
| Bollinger Bands | Neutral |
Brent Crude Chart Analysis
Brent Crude Technical Analysis
On the daily timeframe, Brent: D1 broke down the uptrend support line. A number of technical analysis indicators have formed signals for further decline. We do not rule out a bearish movement if Brent: D1 falls below the last low: 65. This level can be used as an entry point. The initial risk limitation is possible above the last 3 upper fractals and the Parabolic signal: 70.3. After opening a pending order, we can move the stop-loss to the next fractal maximum following the Bollinger and Parabolic signals. Thus, we change the potential profit / loss ratio in our favor. After the transaction, the most cautious traders can switch to the four-hour chart and set a stop-loss, moving it in the direction of the trend. If the price overcomes the stop-loss (70.3) without activating the order (65), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Commodities - Brent Crude
The United States and Iran are negotiating the lifting of anti-Iranian sanctions. Will the Brent quotes continue to decline?
Iranian President Hassan Rouhani stated that the negotiations to re-establish the Joint Comprehensive Plan of Action (JCPOA) on Tehran's nuclear program and lift economic sanctions are progressing and a final agreement is "within reach." The sanctions were imposed in 2018 over Iran’s accusations of enriching uranium and failing to comply with the 2015 JCPOA conditions. These include a ban on the export of Iranian oil to Western countries. On June 18, presidential elections will be held in Iran and the authorities are striving to agree on the lifting of sanctions by this date. Iran is currently producing 2.4 million barrels per day (bbl/d). The lifting of sanctions could allow it to increase the oil production by another 1-1.5 million bbl/d. If this volume enters the world market, then it may have a negative impact on quotes. An additional factor for the decline in oil prices may be an increase in its reserves in the United States for the week by 1.32 million barrels. Note that OPEC predicts a recovery in world oil consumption in the Q4 of 2021 to 99.74 million bbl/d. This is close to the pre-2019 level of 99.98 million bbl/d. Accordingly, the continuation of the COVID-19 epidemic in some countries of the world, such as India, is another negative factor for oil prices.
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