Brent oil price develops bearish momentum


Current dynamics

Brent crude oil prices are showing a slight decline, developing the “bearish” momentum formed the day before and preparing to test the 66.00 mark for a breakdown downward. The instrument’s position is under pressure from the alarming situation with the incidence of coronavirus in Asia, while interruptions in the supply of Libyan oil somewhat counterbalance the situation.

The report of the American Petroleum Institute (API) on the reserves of “black gold” released yesterday did not have a noticeable effect on the dynamics of the instrument. For the week of April 16, published data showed a slight increase in the index of 0.436 million barrels after a decline of 3.608 million barrels in the previous period.

Investors are awaiting the release of a report on oil reserves from the US Department of Energy today. Forecasts assume a further 2.86 million barrels decline after a 5.889 million barrels decline in the previous period.

Support and resistance levels

Bollinger Bands on the daily chart are showing weak growth. The price range broadens slightly from above, remaining spacious enough for the current level of market activity. The MACD indicator turned down, forming a weak sell signal (the histogram is below the signal line). Stochastic is showing similar dynamics, quickly retreating from its maximum values, signaling an overbought instrument in the ultra-short term.

The current readings of technical indicators do not contradict the further development of the bearish trend in the ultra-short term.

Resistance levels: 67.00, 68.00, 69.00, 70.00

Support levels: 66.00, 65.00, 64.00, 63.00

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Libertex [CPS] WW

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