Buying Brent until its price reaches $67.5 per barrel

Oil prices, including Brent crude, started the week with a gap down. 

The decline seems to be driven by several factors. First is Trump’s renewed pressure on Powell, which jeopardizes the independence and stability of the US financial system. Second is the statement of Japan’s representatives about rejecting further concessions on the trade deal with the US administration. Given the general negativity, these two events were enough to push Brent prices down. 

Besides, signs of progress in talks between the US and Iran eased some concerns. Iranian Minister of Foreign Affairs claimed the countries agreed to begin drafting a potential nuclear deal framework during the negotiations.

From the technical point of view, there is still a price zone above the level of $68 per barrel, which Brent crude oil has not retested yet. It gives the bulls chances of Brent strengthening further. The scenario is also supported by the unclosed gap above $67.5 per barrel. 

The overall recommendation is to buy Brent oil.

Profits should be taken at the level of 67.5. A Stop loss could be set at the level of 62.5.

The volume of the opened position should be set in such a way that the value of a possible loss, fixed with the help of a protective Stop loss order, is no more than 1% of your deposit funds.