Today during the Asian session, prices for Brent crude oil show flat trading dynamics, consolidating near the resistance level of 68.00, which was actively tested at the auction the day before.
Yesterday, the instrument was supported by optimistic analysts’ forecasts regarding the recovery in oil demand in the world as the epidemiological situation improves. However, more active purchases were held back by alarming news about the incidence in India, Brazil and Japan.
Against the background of a gradual increase in demand for energy, the Organization of the Petroleum Exporting Countries (OPEC), as well as its allies, are considering the possibility of weakening the current restrictions on production from May.
Investors’ attention on Friday, in addition to the block of American macroeconomic statistics on personal income and expenses, will be the Baker Hughes report on active oil platforms in the US. The previous report showed a slight decrease in the number of drilling rigs from 344 to 343 units.
Support and resistance levels
On the daily chart, Bollinger Bands are rising moderately. The price range is narrowing, indicating flat trades at the end of this week. The MACD indicator is growing, maintaining a fairly strong buy signal (the histogram is above the signal line). The stochastic, having approached its maximum levels, turns downward, signaling in favor of the development of a corrective decline in the ultra-short term.
- Resistance levels: 69.00, 70.00, 71.80
- Support levels: 68.00, 67.00, 66.00, 65.00
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