After a sharp increase over the past two trading days, Brent crude oil prices are showing flat dynamics today during the Asian session, consolidating near the $73 per barrel mark
Analysis and forecast of the Oil price for today and July 26-27, 2021
The instrument is still supported by expectations of a reduction in the supply of oil and petroleum products against the background of a rapid recovery in demand around the world. Last week, OPEC+ members agreed to gradually increase the volume of energy supplies by 400 thousand barrels per day in the period from August to December. In addition to meeting the growing demand, the cartel aims to slightly reduce the prices of the asset.
On Friday, investors expect the publication of statistics on the July PMI indices in the United States, as well as a report on active oil platforms from Baker Hughes. The previous data reflected an increase in the number of drilling rigs from 378 to 380 units, which was the third consecutive increase.
Support and resistance levels
On the daily chart, the Bollinger bands unfold into a horizontal plane within the forecast. The price range practically does not change, but it remains quite spacious for the current level of activity in the market. The MACD indicator has turned in the direction of growth, forming a strong buy signal (the histogram is located above the signal line), and is trying to gain a foothold above the zero line. Stochastic maintains a confident upward trend, but is rapidly approaching its maximum levels, signaling the risks of overbought instrument in the ultra-short term.
Resistance levels: 73.00, 74.00, 75.50, 76.91
Support levels: 71.80, 71.00, 70.00, 69.00.
Trading Scenarios
Thus, the analysis and forecast of oil prices for July 26-27, 2021, long positions can be opened after the breakdown of the 74.00 level up with the goal of 75.50. Stop loss — 73.00. Implementation period: 1-2 days.
Short positions can be opened after the breakdown of the 71.80 level down with the goal of 70.00. Stop loss — 73.00.