WTI and Brent React To a Key Pivot

WTI and Brent React To a Key Pivot

2024-02-21 • Actualizada

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

XBRUSDDaily - 210224.png

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

 XTIUSDDaily - 210224.png

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.

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