Today the price of Brent crude oil opened with a gap up after Saudi Arabia announced on Sunday that it cuts all diplomatic ties with Iran. According to some experts, current conflict can make the process of sanctions removing from Iran significantly more difficult, while Iran hoped to increase oil exports at the beginning of the year.
At the same time, oil prices were pressured by poor data that came out in China today. The Caixin Manufacturing PMI fell to 48.2 points while economists forecasted a growth to 49.0 points.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally while the price range remains very narrow. MACD is growing and giving a buy signal. Stochastic is turning up.
The indicators recommend waiting for clearer trading signals.
Support levels: 37.00 (local low), 36.20, 35.85 (22 December low), 35.00.
Resistance levels: 38.00 (local high), 38.77, 39.44 (11 December high), 40.00, 4.46, 41.00, 42.08.
Long positions can be opened after the breakout of the level of 38.00 (with the appropriate indicators signals) with the target at 40.00 and stop-loss at 37.60. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 37.60 with the target at 36.00 and stop-loss at 38.00. Validity – 2-3 days.