Current trend

Brent Crude Oil prices are showing ambiguous trading dynamics during the Asian session, holding near 76.55. Since last week, the instrument has been actively declining, retreating from local highs at 81.80.

The pressure on the quotes was exerted by hopes for an easing of geopolitical tensions in the Middle East. US Secretary of State Antony Blinken said that Israeli Prime Minister Benjamin Netanyahu accepted proposals developed by Washington, which will allow an agreement with representatives of the Hamas movement on a ceasefire in the Gaza Strip. Earlier, representatives of the Islamist organization rejected the peace plan of the last round of negotiations, stating that they do not accept the possibility of Israel maintaining a military presence in several points of the disputed territory, including the Philadelphia Corridor, which runs along the border of the Gaza Strip and Egypt.

Yesterday’s report of the American Petroleum Institute (API) on the dynamics of commercial oil reserves recorded their growth for the week of August 16 by 0.347M barrels after –5.205M barrels in the previous reporting period, although analysts expected a correction of –2.800M barrels. Today, similar statistics from the Energy Information Administration of the US Department of Energy (EIA) are due. The forecasts suggest a decrease in reserves by 2.800M barrels after an increase of 1.357M barrels earlier.

Support and resistance

On the daily chart, Bollinger bands show a confident decline: the price range is expanding from below, letting the “bears” new local lows. MACD maintains a strong sell signal, located below the signal line. Stochastic shows similar dynamics but is close to the lows, indicating that the instrument may become oversold in the ultra-short term.

Resistance levels: 77.00, 77.86, 79.00, 80.00.

Support levels: 76.05, 75.04, 74.00, 73.00.

Trading tips

Short positions may be opened after a confident breakout of level 76.05 downwards, with the target at 74.00. Stop loss – 77.00. Implementation period: 2–3 days.

Long positions may be opened after a rebound from 76.05 and a breakout of 77.00, with the target at 79.00. Stop loss – 76.05.