Oil was up over 3% yesterday. Such optimism was related to the news about the Saudis' oil price increase in December and China's oil import growth in October. Now prices are stabilizing and concerns about recession occur as more Chinese prevalence is on the rise.
On the daily chart, we can see that oil prices broke the downtrend in October and are now consolidating at current levels. We will draw Fibbonacci levels from the high to the low of this trend.
Technically, yesterday's rise in oil tested the 38.2 Fibbo level, which was previously tested last month. At this point the price growth has slowed down once again. The RSI also indicates that the "local ceiling" for the growth of oil has been reached.
A return to the lower boundary of the new uptrend or the Fibbo level of 23.6 is the most likely technical outcome.
In the short term it is preferable to open short positions on Brent.
Take profit 1 — $94 Take profit 2 - $92 (green lines on the chart)
Stop loss — renewal of the local maximum of $100 (red line on the chart)
This content is for informational purposes only and is not intended to be investing advice.
