Brent continues to grow amid US economy stabilization

16 August 2024 251
Elena_Dorokhina
Elena_Dorokhina

Listed among the best MarketCheese authors
1st in the segments "Currencies", "Metals" and "Oil and gas"
Brent continues to grow amid US economy stabilization

On Friday, Brent oil prices are moderately declining, but the price rose 1.6% for a second straight week. Such increase was driven by strong US economic data easing investor worries about potential recession in the country.


According to the government report released Thursday, US retail sales rose 1% in July. In addition, data released this week showed a decline in the number of Americans filing new claims for unemployment benefits.


US consumer prices showed moderate growth in July, and the annual inflation rate slowed to 2.9%, the lowest level in the last 3.5 years. This strengthened traders' hopes that the Federal Reserve (Fed) would cut interest rates.


Meanwhile, oil prices are being held back due to the uncertainty regarding demand in the US and China. US crude inventories rose earlier this week, while Chinese refineries sharply lowered crude processing volumes last month on weak fuel demand.


Besides, the US Republican presidential candidate Donald Trump stated that if he won the election, he would ramp up oil production in order to lower energy prices.


Technical characteristics of Brent oil prices show the exit from the downtrend on the H2 timeframe. According to wave analysis, the price is in the process of forming the second correction wave. The Moving Average of the Oscillator (with parameters 12, 26, 9) remains bullish, suggesting potential growth and transition to the third ascending wave.


Short-term prospects for the Brent oil price suggest buying, with the target at the level of 85.60. Part of the profit is recommended to be taken near the level of 83.20. A Stop loss could be placed at the level of 77.90.


Since the bullish trend is short-term, the trading volume should not exceed 2% of the total balance to reduce risks.

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

error
More
Elena_Dorokhina
Elena_Dorokhina

Listed among the best MarketCheese authors
1st in the segments "Currencies", "Metals" and "Oil and gas"
Comments
New Popular
Send
Commenting rules