Comprehensive Brent Oil Analysis for December 20, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the BRENT OIL for 20th December 2023.

Brent Oil Analysis Key Takeaways

• Saudi Arabia extends production cuts: In order to ensure that oil prices are at a profitable level, Saudi Arabia will extend its unilateral oil production cut plan of 1 million barrels per day into the new year.
• Supply side is overwhelmed: whether it is U.S. shale oil or the surge in Iranian oil production, OPEC’s production cuts have doubled the pressure.

Brent Oil Technical Analysis

Brent Oil Daily Chart Insights

• Stochastic Oscillator: After the indicator sends a bull signal in the oversold area, its smooth upward movement indicates that the current oil price is in a bull trend.
• 33-day moving average: The recent rise in oil prices has been close to the 33-day moving average, which prevented further rebound on November 30. Pay attention to whether oil prices can effectively break through today, and you can look for long opportunities at that time.

Brent Oil 1-hour Chart Analysis

• Stochastic oscillator: The indicator is currently entangled in the overbought area, suggesting that there is probability of a correction in oil prices, and we are waiting for the indicator to send out a bull signal again.
• Resistance level: Oil prices are currently hindered by the previous high. After oil prices completely stand above the previous high, you can focus on long opportunities.
• ATR combination indicator: On December 18, oil prices broke through the consolidation range, and the ATR combination indicator sent a signal suggesting that the breakthrough was effective. The market completed its retracement structure yesterday, and oil prices are more likely to rise further.

Ultima Markets MT4 Pivot Indicator

• According to the pivot indicator in Ultima Markets MT4, the central price of the day is established at 78.819,
• Bullish Scenario: Bullish sentiment prevails above 78.819, first target 80.185, second target 81.023;
• Bearish Outlook: In a bearish scenario below 78.819, first target 78.000, second target 76.634.

Conclusion

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