18 May, 2015
On the last trading session on Friday, May 15, the price of crude oil Brent showed mixed dynamics. After the sluggish trading in the morning, the price sharply went down in the afternoon, and reached the lows of 65.40 then it quickly regained lost positions. Trades finished at the level of 66.90. Trading volatility amounted to 130 points.
No important macro-economic that can seriously affect Brent are scheduled for the release today, therefore let’s review technical analysis.
Support and resistance
On the four-hour chart technical indicators do not give strong signals; however they show probability of the upward movement. MACD histogram is in the positive zone; its volumes are slowly increasing, reflecting buyers’ influence. Bollinger bands are converging, indicating upward movement. It is likely that slow growth in price is of short-term and after that Brent will go down.
Resistance levels: 67.00, 67.75 and 68.39.
Support levels: 65.56, 65.40 and 64.40.
Sell positions are recommended after consolidation of the price below the level 66.56 with the nearest target of 65.40. Breakdown of the level of 65.40 will open the way to support level of 64.40. Upward movement is possible after consolidation of Brent above the level of 67.75. In this case the “bulls” will try to push Brent up to 68.39.
US stock indices went up on Wednesday after the release of the minutes of the US Fed meeting in January, which was devoted to the US monetary policy. Dow Jones Industrial Average rose by 1.6%, Nasdaq Composite - by 2.2%.
Past week was marked by a two-day speech of Janet Yellen, the head of the US Fed. Mrs. Yellen did not give a straightforward answer regarding the interest rate increase at the US Fed meeting in March...
On Thursday, the price of gold strengthened by 4% and reached its year highs. The price has been growing amid an increase in demand for safe-haven assets, such as gold and the Yen...
Yesterday, US Ministry of Energy announced about unexpected decline of oil and oil products reserves by 754 million barrels over the last week. Spot-price of crude oil Brent has grown over 31.80 USD per barrel...
Over the past 2 weeks the Yen has significantly strengthened its positions against the USD due to the increasing demand for the safe-haven currency. Mixed macro-economic data on the US economy has decreased a chance that the US Fed will tighten monetary policy...
The currency pair is traded at the strong level of 1.0960 –1.1060. In case of maintenance and testing of the level and respective confirmation (for example, a pattern Price Action), we recommend to open long positions. Stop order can be placed below the signal line...
Despite that fact that the data on Non-FarmPayRolls was below the forecast (151 000 against the forecast of 190 000 and 262 000 new jobs in December), the USD has grown against the major currencies. The rise was caused by the other data on the US labor market in January...
While market participants are waiting for the release of NFPR (Non-Farm PayRolls), oil prices are gradually declining since the opening of the trading day and at the beginning of the European session...
API (American Petroleum Institute) report, released this Tuesday, showed that last week US oil stocks rose by 3.8 million barrels. Obviously, it was a bad news for oil prices, as heavy stocks of oil in the USA creates situation when supply outruns demand in the world market...