Selling Brent to level of 77.3 dollars per barrel

Deflationary pressures in China have intensified, according to data released by National Bureau of Statistics of China on Saturday. The consumer price index rose just 0.4%, while the producer price index fell at the fastest pace in six months, dropping to 2.8% year-on-year. Beijing announced an increase in bond issuance, but did not specify the amount in dollars.

At a press conference held earlier that day, investors tried to determine the total size of a stimulus package designed to revitalize China's faltering economy.

Such negative news outweighed market concerns about ongoing tensions in the Middle East.

“Saturday's briefing by China's Ministry of Finance was a disappointment. No fiscal measures necessary to address downside risks to growth and wake up Chinese consumer activity were announced," the investment community said.

Meanwhile, BP, the largest US oil company, reported a $600 million drop in third-quarter profit due to weak refining margins amid a slowdown in global oil consumption.

Today at 3:00 pm (GMT), the OPEC group's monthly report on the state and prospects of the global oil market will be released. If the new survey confirms a decline in global demand by more significant amounts than the previous one, it will push global oil prices down.

The final recommendation is to sell Brent oil in case the OPEC monthly report provides a negative assessment of the global oil demand outlook. From the technical point of view, the support level of 77.3 dollars per barrel may become the target of possible decrease in Brent prices.

The profit is fixed at the level of 77.3. The loss is fixed at the level of 79.0.

The volume of the opened position should be set in such a way that the value of the possible loss, fixed with the help of a protective stop order, is no more than 2% of the deposit funds.