Brent NOK Technical Analysis

 Brent NOK Technical Analysis

Brent NOK Technical Analysis.

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Sell Stop: Below 680

Stop Loss: Above 746

IndicatorSignal
RSINeutral
MACDSell
MA(200)Neutral
FractalsNeutral
Parabolic SARBuy
Bollinger BandsNeutral

 

Brent NOK Chart Analysis

Brent NOK Technical Analysis

On the daily timeframe, BRENT/NOK: D1 is in a narrow neutral range. It must be broken down before opening a position. A number of technical analysis indicators have generated signals for further decline. We do not exclude a bearish movement if BRENT/NOK: D1 falls below the last lower fractal, the Parabolic signal and the lower Bollinger line: 680. This level can be used as an entry point. The initial risk limitation is possible above the historical maximum in July 2008: 746. After opening a pending order, move the stop loss following the Bollinger and Parabolic signals to the next fractal high. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (746) without activating the order (680), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis of PCI – Brent NOK

We are proposing to review the BRENT Oil versus Norwegian Krone Personal Composite Instrument (PCI). It reflects the dynamics of changes in the price of a barrel of Brent crude against the Norwegian currency. Will the BRENT/NOK quotes go down?

Such a movement would indicate that oil is getting cheaper and the Norwegian krone is strengthening. The decline in Brent quotes is caused by an increase in the number of new cases of Covid-19 in Europe and, in particular, in Germany, Britain and Austria. This could lead to a decrease in demand for motor fuel if the quarantine spreads. In Norway, GDP growth in the 3rd quarter was 3.8% in quarterly terms and approached the all-time high of the 3rd quarter of 2020 at 4.6%. It far exceeded the + 1% forecast. In October, Norway’s foreign trade surplus rose to a record high of 84.5 billion kronor. In addition, in October, the Norway Labor and Welfare Administration reported a seasonal unemployment reduction to 2.2%. This is the lowest level since December 2019.

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