Comprehensive Brent Oil for November 3, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the Brent Oil (UKOUSD) for 3rd November 2023.

Key Takeaways 

• Russian supply increases: Tanker tracking data monitored by foreign media show that Russia’s seaborne crude oil exports have been exceeding the country’s export target as part of the OPEC+ agreement for several weeks. Observed exports in the most recent week were 360,000 barrels per day above target exports. In the most recent period, four-week average daily exports were nearly 200,000 barrels per day above that level.
• The impact of the Israeli-Palestinian conflict is gradually weakening: Traders are still worried that something will cause the conflict to spread beyond Israel and its immediate neighbors. But that influence has steadily waned, even after Israel began its ground offensive in Gaza. 

Brent Oil Technical Analysis 

Brent Oil Daily Chart Insights

• Stochastic Oscillator: The fast line is about to cross the slow line, suggesting that the current bullish power may have the upper hand. However, we are still temporarily bearish until there is a clear signal. 
• Price Action: After oil prices showed a pin bar on Wednesday, the closing line showed a typical harami price action yesterday. If it breaks through the high point of the pin bar today, the bulls will clearly have the upper hand, and the market may reverse upward. 
• Moving average: The black 65-day moving average and the green 240-day moving average form a rectangular range. A breakthrough in any direction of the range may be the next trend direction. 

Brent Oil 1-Hour Chart Analysis

• Support and resistance price: The current resistance of oil price is a repeatedly verified downward trend line, and the bottom is the black 65-period moving average potential support level. 
• Fibonacci retracement level: Since the internal structure of yesterday’s upward trend is a complete 5-wave structure, it is temporarily judged to be a driving wave. Wait for the market to fall back to the Fibonacci retracement level of 38.2% to observe whether there is a signal to continue to rise.  
• Stochastic Oscillator: It is worth noting that the indicator is currently seriously overbought, and there is a certain probability of a correction during the Asian session. 

Ultima Markets MT4 Pivot Indicator

• According to the pivot indicator in Ultima Markets MT4, the central price of the day is established at 87.361, 
• Bullish Scenario: Bullish sentiment prevails above 87.361, first target is 89.077, second target is 89.769. 
• Bearish Outlook: In a bearish scenario below 87.361, first target 86.688, second target 84.991. 

Conclusion