Brent crude has lost almost 14% over the July peak, but buyers showed the declines remain shallow. The combination of the 100MA in the daily chart and the upward trend line brought buyers back to the table.
After printing some price corrections, we witnessed a decent rebound to regain the $ 73.50 weekly level. This suggests that the bulls still have dominance, but we still believe we are not out of the woods yet. We study the action around 200MA (monthly). Then our next interesting levels to consider are $ 76 and $ 77.50.
At the bottom, the oil support layers are placed between $ 70 and $ 67. Below are $ 64.50 and $ 60. In the highest time period, we can see the price of oil rise and stay above the significant resistance of the 200-month simple moving average.
The recent development of the Delta variant stops the optimism of global growth, but the fear is short-lived. On Monday in the last hours of Asia, Singapore announced it intends to relax more scrubs of viruses, including starting to allow quarantine-free travel in September, marking the first time a timetable has been set for reopening borders that have been closed mostly during more than a year. reported by Bangkok Post.
Chief economist Daniel Lacalle tweeted that “global PMIs suggest the maximum recovery has lagged behind.”
The following graph published by Yardeni Research also suggests that the history of global growth has reached its peak.
Therefore, we expect oil to remain in limited territory, for example, between $ 65 and $ 77 in the coming weeks. The current uptrend will be truncated if we lose support at $ 60.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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