Yesterday, Trump reaffirmed his earlier statement that he would impose 100% secondary tariffs on Russia's trading partners if no progress in resolving geopolitical tensions in Eastern Europe is made. Such a step from the US President could lead to drastic changes in the oil market and create a certain supply deficit. This shortage gives OPEC+ an opportunity to increase production.
According to the Brent crude chart, Trump’s statement triggered a strong but short-lived, bullish momentum. Now, having digested this news, the market is likely to aim at closing the resulting price gap. Oil quotes have begun to slowly drift back down, and the RSI oscillator has already shown a more significant decline after the bullish impulse faded. The downside target for Brent prices is the previous local high at $70.8 per barrel. However, keep in mind that further price increases cannot be ruled out. Thus, if entering a sell trade now, a tight Stop Loss is advisable to ensure a favorable risk-reward ratio. There is also an unfilled gap above the current Brent price level, leaving room for a potential rise to the $74–$75 per barrel range.
The overall recommendation is to sell Brent crude.
Take Profit: $70.8. Stop Loss: $72,4.
The position size should be determined so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this volume, it is better to refrain from entering the market on this signal and wait for other low-risk trading opportunities.
This content is for informational purposes only and is not intended to be investing advice.
