Buying Brent crude oil until price hits $68 per barrel

The events of the past few days in the energy market have shown that investors are all looking for optimistic hints about the recovery of the heavily depressed commodity prices, including Brent crude oil.

Even minor news creates noticeable bullish impulses. The technical picture now suggests that Brent oil is set to keep trying to test the previously broken support at the level of $68 per barrel. This level is likely to become a medium-term resistance in the future. Even if the trade tension does not ease, and the major oil producers continue to increase production, exchange pricing factors will push Brent upward to fill the gap in market bids. Commodity prices tend not to leave gaps open. Historical data of commodity futures shows that such gaps are always closed, it is only a matter of time. Trump's actions show that even despite his tough stance when it comes to high risks for the economy, he is playing back the situation. The US President even describes himself as “flexible”. This gives investors some optimism and creates a cautious bullish sentiment among them.

For Brent oil, the most rarefied range of bids is observed from $65 to $72 per barrel. Ideally, the price should test the level of $72, but given the current minor sentiment, such a scenario is unlikely to happen. However, the level of $68 per barrel is quite achievable in terms of technical regularities of price behavior, in spite of macroeconomic negatives.

The overall recommendation is to buy Brent oil.

Profit could be taken at $68 per barrel. A stop loss could be set at $57.

The volume of the opened position should be set so that the value of a possible loss, defined with a protective stop order, does not exceed 1% of your deposit.