BRENT crude oil quotes end the trading week near the area of 69.17 dollars per barrel. And it continues to move within the correction and the ascending channel. Moving averages indicate a bullish trend. Prices moved up from the area between the signal lines, which indicates pressure from buyers of raw materials and a potential continuation of the rise. At the moment, we should expect an attempt to develop a fall and test the support area near the level of 66.85. Then, a rebound and continued growth of oil in the area above the level of 88.05 dollars per barrel.
An additional signal in favor of the rise in oil prices this week will be a test of the support line on the relative strength indicator. The second signal will be a rebound from the lower border of the ascending channel. The cancellation of the option of growth of quotations and prices for BRENT oil in the trading week of May 31 - June 4, 2021 will be a fall and a breakdown of the level of 56.55. This will indicate the breakdown of the support area and the continuation of the fall of oil to the area below the level of 47.55. With the breakdown of the resistance area and the closing of quotes above the level of 75.55, we should expect confirmation of the growth in the price of BRENT oil, which will indicate a breakdown of the upper limit of the ”Triangle” model.
BRENT crude oil forecast for the week of May 31 - June 4, 2021
Thus, the BRENT oil forecast for the week of May 31 - June 4, 2021 suggests an attempt to test the support area near the level of 66.85. Where should we expect a rebound and an attempt to increase oil with a potential target at 88.05. An additional signal in favor of an increase in the price of oil will be a test of the trend line on the relative strength indicator. The cancellation of the growth option will be a drop in the price and a breakdown of the area of 56.55. This will indicate the breakdown of the support area and the continuation of the decline in the oil price with a target below 47.55.