Brent oil price: overbought risks are growing in the ultra-short term

Current dynamics

Today, during the Asian session, Brent oil prices show multidirectional dynamics, consolidating near the local highs since March 15 and the psychological mark of $ 70 per barrel. The day before, the quotes were supported by the optimistic sentiments of investors, who are reacting to the improvement in the epidemiological situation in the United States. More and more US states are announcing the lifting of existing restrictions, which should have a beneficial effect on the pace of recovery in energy demand. In turn, the rise in incidence in India is somewhat limiting the growth of the instrument.

Another negative factor was the publication on Tuesday of the report of the American Petroleum Institute. So, for the week of April 30, the reserves of “black gold” in the country rose sharply from the previous 4.319 million to 7.7 million barrels. On Wednesday, traders await the release of the final report from the US Department of Energy.

Support and resistance levels

On the daily chart, Bollinger Bands are growing slightly. The price range is expanding, but it is not keeping pace with the burst of bullish sentiment at the moment. The MACD indicator is growing, maintaining a strong buy signal (the histogram is above the signal line). The Stochastic maintains an upward direction, but is located in the immediate vicinity of its maximum values, which indicates the risks of an overbought instrument in the ultra-short term.

The current readings of technical indicators do not contradict the further growth of the instrument in the nearest time intervals.

  • Resistance levels: 70.00, 70.50, 71.00
  • Support levels: 69.50, 69.00, 68.20, 67.48

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