Medium-term growth targets for Brent are $84 and $87 per barrel

22 February 2024 123
Medium-term growth targets for Brent are $84 and $87 per barrel

From September to December last year, the Brent oil price fell by more than 20%, and then entered a correction phase. By now, it has recovered about 40% of its losses.


Today, Brent prices are fluctuating between the Fibonacci levels of 38.2% and 50% around $82 per barrel.



Macroeconomic background


The main drivers of the oil market are still geopolitics, the actions of OPEC+ to regulate oil production quotas, and demand from the world's major economies.


The situation in the Middle East is relatively stabilized. OPEC+ countries are adhering to the terms of the alliance agreements. In a difficult geopolitical situation, oil remains a sought-after commodity.


So, no sharp surges in oil prices should be expected at the moment. Most likely, the upward correction will be continued to the Fibonacci levels of 50% and 61.8%.


The CFTC’s Friday report, which demonstrated the revival of speculators' interest in oil, may serve as another proof of this.



Technical Analysis Overview


Yesterday, the Brent price once again approached the 38.2% Fibo level and then turned back to the level of 50%, forming a "hammer". This is a good set up for further growth.


Moreover, the DeMarker indicator hasn't entered the overbought zone yet, which also indicates the remaining upside potential.



Trading plan for the coming days:


Buy Brent from the market with the following targets: Take Profit 1 = 84, Take Profit 2 = 87.

Protect the positions with Stop Loss = 81.10.



Successful trading to everyone!

This content is for informational purposes only and is not intended to be investing advice.

error
More
Comments
New Popular
Send
Commenting rules