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Brent Crude Oil Technical Analysis
The Brent market looks very much the same with the $70 level offer in support over the last three years as well. Volume is picking up, so it’ll be interesting to see how this plays out. But if we can break above the highs of the day during the trading session on Tuesday, then we could get a bounce closer to the $74 level, I think rather quickly, but the question at this point in time is, OPEC has announced that they may produce more oil, and that, of course, is a negative for the market, but at the same time, are they buying?
OPEC is known to go into the futures market and lift the price just a touch in certain areas. And when you look at the last three years, there’s definitely an area right around here that somebody with a lot of money has been buying. And I would assume that there is still some interest in that area based on technicals, if nothing else.
All things being equal, though, I think bouncing above the highs of the day on Tuesday is a short term buying opportunity. And I do stress the phrase for the short term, it’s a day trading opportunity at best, would be my guess. I wouldn’t be looking for major swings, although demand should pick up in the next couple of months. And therefore, you have to be cognizant of this.
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