Fundamental and technical data signal Brent is on track to 92.20

26 April 2024 186
Fundamental and technical data signal Brent is on track to 92.20

Oil price is on track to end higher this week amid expectations of US inflation data. The figures could be informative about the future course of the Fed’s monetary policy and renew interest in risk assets, including oil.

 

The Brent price rose above $89 per barrel and grew more than 2% for the week. Market participants took positively the comments of US Treasury Secretary Janet Yellen about the potential strengthening of the economy, despite the weak GDP data for the first quarter.

 

As Yellen said the day before, economic growth is probably faster than it’s reflected in the current data. She suggested that the US’s GDP figure is likely to be revised higher. Inflation, in turn, will decline to acceptable levels, the US Treasury Secretary said.

 

Today, the core US Consumer Spending Price index (PCE) for March is expected to be released. The Fed is closely monitoring this indicator to achieve the inflation target of 2%.

 

Geopolitical tensions in the Middle East are also in the center of market’s attention. Its intensification is one of the key drivers of oil price growth.

 

From the technical point of view, Brent oil price is forming an uptrend on the D1 timeframe.

 

In terms of wave analysis, the price is forming the second descending wave on the H2 timeframe. However, the RSI (standard values) signals a possible change in the trend and the transition to the third upward wave, which is confirmed by the divergence.

 

Signal:

The short-term outlook for Brent crude oil is to buy.

The target is near the level of 92.20.

Part of the profit should be fixed near the level of 89.90.

The Stop-loss could be placed near the level of 84.35.

 

The bullish trend is of a short-term nature, so it is suggested to limit the trading volume to no more than 2% of your capital.

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

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