Brent: 50.00 broken through, but correction should happe on 07.08.2015

August 7, 2015

Current trend

During the Asian session oil prices rose slightly, however the general downwards trend continues. The USA is likely to lift the export ban on crude oil; thus, US oil together with Iranian oil will be added the existing global oversupply. In the medium term, the excess of supply over demand remains the main factor affecting the oil prices.

Today, Non-farm Payroll is released in the USA. The statistics may show the growth in employment rate, US economy improvement and, as a result, the increase in the demand for oil in the short run. However, the oil prices are likely to continue falling after a short-term correction.

Support and resistance

The price is in the downwards trend since 2014 and is falling to the year lows 47.00-45.00 $ per barrel.

OsMA and Stochastic on the weekly chart are giving sell signals; however, on the 4-hour chart they are giving buy signals. On the daily chart the indicators are turning into long positions.

A short-term upwards correction to 50.00, 50.50, 51.00 and maybe to 52.50 is possible. However, a sharp fall may follow, thus, two scenarios are possible. Wait when the correction finishes and indicators turn to sales or open small long positions with short stop-losses. The second one is more risky.

Support levels: 49.00, 48.10, 47.00.

Resistance levels: 50.50, 51.50, 52.50, 55.00.

Trading tips

Open short positions when indicators on the 4-hour char turn to sales (OsMA is below the zero line, Stochastic is below “50” level). Pending sell orders are also relevant from 51.50, 52.00, 52.50 with targets at 50.00, 49.00, 48.10, 47.00, 46.75 and stop-loss at 55.50

Alternative long positions may be considered only when the level of 57.00 (EMA200 on the 4-hour chart) is broken through. In this case, targets may be 60.80, 62.80 (Fibonacci 23,6%).

Publication source
LiteForex information  LiteForex reviews

January 23, 2017
Japanese Yen is taking the heat
Looking at the daily chart of the Japanese Yen, we can see that the bullish engulfing has formed next to the 50% Fibonacci level, which has been broken on the weekly chart at the points of 125.853 and 98.935...
January 23, 2017
Main Macro Events This Week
President Trump has his feet under the desk in the Oval office and the tone of his inaugural speech and actions over the weekend reiterated his campaign themes to Make America Great Again...
January 23, 2017
UK stocks start the week on the back foot
The FTSE100 is under some selling pressure this morning and trading lower by around 40 points. The leading UK stock index posted its first weekly loss in over a month on Friday and has continued lower out the gate today. The pound is broadly higher on the day and has moved back above the 1.24 handle against the US dollar...

FOREX.com Rating
 FXTM Rating
Z.com Trade Rating
OANDA Rating
Fort Financial Services Rating
FBS Rating

TropicalTrade Rating
UKoptions Rating
Banc De Binary Rating
EZTrader Rating
Migesco Rating
OptionRally Rating