Brent is on FIRE! New Bullish Momentum or Pullback?

1 мар.

In this morning's Asian market hours, optimism about a possible interest rate cut by mid-year boosted the market sharply causing it to start unexpectedly strong, especially the oil market, including both West Texas and Brent crude oil in a tremendous price rally. Brent futures experienced a notable increase. At the start of the European session, an increase in expectations was also observed, resulting in a rise in European stocks. In a matter of hours, the price of a barrel of Brent rose from $81.64 to $82.91. The rise in Asian hours in Brent and West Texas futures contracts expiring in May was 0.4% and 0.3% respectively, being at the European opening of more than 1%.

German conflicts to receive supply with the active NordStream line may especially affect chemicals, gas derivatives and European oil prices added to the ukranian conflict. In addition, economic data from several Eurozone countries such as Italy, Spain, Portugal, Ireland, and later at the American opening, manufacturing PMIs from the United States and Canada, may have a significant impact on oil prices.

From a technical standpoint, it is unlikely that we will see the $135 per barrel seen in 2022 again in the near term. However, it is possible that the falling range has reached its low around the $71.47 seen in December, and could head towards $95.12 if the current uptrend continues. The RSI indicates an oversold level of 62.6%, which suggests that there is still room for the trend to continue, although the RSI average system marks us a value of 53.03% which is basically a strong irregularity in demand. If we look at the crosses of averages, they show us an opening that could lead to a strong move that is yet to develop.

Ion Jauregui - AT Analyst




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