Oil market sentiment is sad and gloomy. Most traders expect crude prices to remain under pressure.
Key factors influencing Brent's current dynamics are as follows:
Supply-demand imbalance. A global oil surplus is the most significant headwind for quotes. Non-OPEC+ producers are projected to increase their output, while demand is sluggish.
Geopolitical conditions. The commodity market remains susceptible to any escalation or de-escalation of tensions, including new sanction packages. This sustains high price volatility. Breaking the ice between countries could send Brent down further.
Reduced market participation. US exchanges will be closed on November 27 and 28 due to Thanksgiving celebrations. American investors will be less active during this period, which may reduce trading volumes and restrain price movements.
In the near term, bears are expected to dominate, with limited upside potential due to fundamental challenges like oversupply and subdued activity in the US. However, a look at the Brent oil chart at minute intervals reveals a price gap near $63, which is likely to be closed within the next two days.
The overall recommendation is to buy Brent crude. Profits should be taken at the level of $63. Stop Loss could be set at $62.7.
The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
