Comprehensive Brent Oil Analysis for October 12, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the Brent Oil (UKOUSD) for 12th October 2023. 

Key Takeaways 

• Dovish speeches : Federal Reserve Board Governor Waller and Atlanta Fed President Bostic have continued their recent dovish stances. The market is betting that the probability of raising interest rates in November is less than 9%. 
• The reduction agreement may be extended: Putin said that the OPEC+ (production reduction) agreement is likely to be extended, and further measures may be taken next year to stabilize the market. 
• API inventories surge: U.S. API crude oil inventories increased by nearly 13 million barrels last week, the largest increase since January. As supply concerns subside and API crude oil inventories increase significantly, U.S. and Brent oil prices fell in the short term. 

Technical Analysis In Brent Oil Trading Chart

Brent Oil Daily Chart Insights

• Stochastic Oscillator: The indicator has a downward trend today, but it has not yet clearly formed a “dead cross”. We need to wait for confirmation of today’s oil price trend. 
• Price Action:  The price gap below is a common potential support price. The market will have a certain probability of rebounding and rising. 
• Moving average: The price that jumped in the early stage fell after being blocked by the 33-day moving average, and the first target below is the 240-day moving average. This price overlaps with the price gap, so the decline today is temporarily judged as an adjustment.  On the contrary, only after falling below the low price of October 6 can it be confirmed that crude oil prices will continue to follow a long-term short trend.

Brent Oil 1-Hour Chart Analysis

• Fibonacci price: Temporarily judge that the current downward trend is the adjustment structure of the previous upward trend. It can be seen from the Fibonacci retracement line (black) and Fibonacci extension level (red) that it has reached 61.8. % callback and 100% proportional expansion position, the market has a certain probability of support. If it continues to break down, the market will look toward the 78.6% correction and 138.2% proportional expansion. 
• Stochastic Oscillator: The indicator went down again during today’s Asian trading session. Wait for the “golden cross” to appear in the oversold area to confirm the arrival of the bull trend. 

Brent Oil Pivot Indicator

According to the pivot indicator in Ultima Markets MT4, the central price of the day is established at 87.055, 

• Bullish Scenario: Bullish sentiment prevails above 87.055, first target is 87.978, second target is 89.880. 
• Bearish Outlook: In a bearish scenario below 87.055, first target 85.152, second target 84.229. 

Conclusion for Brent Oil Analysis

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