
Last week marked the consolidation for the most active assets of March 1-15 (which is oil and gold). But next week has a lot to show, be ready to take part!
2021-07-15 • Updated
It seems that Saudi Arabia and United Arab Emirates are still discussing a potential agreement over OPEC+ policy about cooling oil prices by increasing oil supply.
After OPEC+ reduced oil production by almost 10 million barrels per day in 2020 to control the supply level during the pandemic, the world economy has started to go through a recovery stage. According to OPEC+ forecast, by Q4 2021, global oil demand will average 99.45 million b/d, compared with 99.98 million b/d in 2019. That is why during the last two weeks OPEC+ has been discussing an increase in oil production. In case this decision is approved, the price correction will be inevitable.
On the daily chart, Brent is trading above 50, 100, 200-day moving averages. It has formed a rising wedge with a divergence on the RSI oscillator, which is a bearish pattern. As soon as the price will cross the bottom line of the wedge it might go down to the 73$, 69.50$, 57$ support levels. Until the bottom line of the pattern has not been crossed the main goal is 77$.
Besides, you can trade Brent in our app FBS Trader!
Last week marked the consolidation for the most active assets of March 1-15 (which is oil and gold). But next week has a lot to show, be ready to take part!
Why brothers? If you put an oil chart on the S&P500 chart, you will find out that these assets have a strong correlation…
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The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.
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