Brent: oil renews lows

13 January, 2016

Brent: oil renews lows

Current trend

Yesterday the price of Brent crude oil continued falling. The price remains under pressure amid strengthening US Dollar, substantial supply excess and slowing Chinese economy.

Due to declining prices, some countries from the OPEC are calling for an unscheduled meeting of the organisation, which could happen in March 2016.

At the same time, analytical agencies are lowering their forecasts for 2016 average prices. For example, Barclays lowered forecasted price of Brent crude from 60 to 37 Dollars per barrel.

Support and resistance

Bollinger Bands on the daily chart is moving down while the price range is widening. However, the price is still trading outside of its borders. MACD is slowing its fall keeping a sell signal. Stochastic is in the oversold zone and trying to turn up.

The indicators recommend waiting for clearer trading signals.

Support levels: 30.25 (local low), 30.00 (2004 low), 29.50.

Resistance levels: 31.00 (local high), 32.00, 32.50, 33.00, 34.00, 35.00 (6 January high), 35.85, 36.20.

Trading tips

Long positions can be opened after the breakout of the level of 32.00 (with the appropriate indicators signals) with targets at 32.55, 33.00 and stop-loss at 31.70. Validity – 1-2 days.

Short positions can be opened after the breakdown of the level of 30.40 with targets at 30.00, 29.50 and stop-loss at 30.70. Validity – 1-2 days.


Source link  
S&P500: Bearish sentiments are strong in the market

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%.

Weekly review for February 15-19, 2016

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...

XAU/USD: gold is growing on February 12, 2016

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...


Brent: oil reserves and oil prices have reduced

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...

Yen has broken down and consolidated below support level

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...

EUR/USD has grown against the USD breaking down strong resistance level

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...


EUR/USD review of the week: USD fell against the major currencies

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...

Brent: completion increases on February 05, 2016

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...

Brent: will oil market swing back to pessimism?

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...

  


Share: