Technical analysis points to further growth of Brent oil price on global events background

On Friday, the price of Brent crude oil has slightly decreased, although it maintains a two-week uptrend amid the expanding conflict in the Middle East. In addition, investors are assessing the potential impact of Hurricane Milton on the US economy and fuel demand.

In the United States, Hurricane Milton made landfall on Thursday, passing through Florida on its path of destruction. The aftermath of the disaster could reduce fuel consumption in some areas of the world's largest producer and consumer of crude oil.

Meanwhile, the global crude oil market is focusing attention this month on potential supply risks amid the escalating situation in the Middle East. Despite warnings from US President Joe Biden about the risk of attacking the energy facilities of Iran, one of OPEC's biggest producers, there is still a possibility of this. This has caused concern among investors. The Middle East accounts for about a third of global crude oil supplies, and there are also several key transportation hubs in the region.

The turmoil in the Middle East has increased volatility and prompted hedge funds to increase net long positions. However, concerns about future consumption, especially in China, are putting pressure on the market. Beijing has scheduled a briefing this weekend, which is expected to provide more details on stimulus measures.

Technical analysis of the Brent oil price shows the formation of a new uptrend after the exit from the bearish trend on the D1 timeframe. Wave analysis indicates the formation of a fifth upward wave on the H4 timeframe. The Moving Average of Oscillator indicator (with parameters 12, 26, 9) is in the positive zone, signaling potential price growth.

Short-term prospects for the Brent oil price suggest buying, with the target at the level of 85.00. Part of the profit should be fixed at 81.15. The stop loss level is set at 74.40.

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