Brent: oil reserves in US increased

October 1, 2015

Current trend

Despite increasing oil reserves for the last week of September in the US, the price of Brent crude oil holds near the level of $49.00 per barrel.

The price was supported by positive Manufacturing PMI data for September from China that showed an increase from 49.7 to 49.8 points. The price is also supported by shrinking oil production in the US and stable world demand. On the other hand, it is under pressure from excess in supply, as OPEC countries increase their output, expectations of Iranian exports, world stock markets fall and anticipations of the interest rates increase in the US.

Meanwhile, as China and the US remain the largest oil consumers, any strong macroeconomic data from these countries have a positive effect on the price of oil.

Support and resistance

On the 4-hour chart, a contracting triangle between the levels of 49.00 and 47.20 seems to be forming.

The price growth is restricted by the strong resistance at 49.00 (EMA200 on the 4-hour chart) and any strengthening up to the level of 50.00 (EMA50 on the daily chart) can only be considered as a correction. A trend reversal can happen after a breakout at 51.00. At the same time, a breakdown of the level of 47.00 could lead to a further fall towards 42.50 (August and year lows).

On the 4-hour and daily charts, OsMA and Stochastic recommend long positions.

Support levels: 48.50, 47.20, 46.25, 45.25.

Resistance levels: 49.00, 50.00, 51.00.

Tradingtips

Long positions can be opened from current prices with the target at 49.86 and stop-loss at 48.90.

Short positions can be opened after the price consolidation below the level of 48.25 with the target at 47.31 and stop-loss at 48.40.

Publication source
LiteForex information  LiteForex reviews

February 28, 2017
Gold may benefit from Trump
The gold price is powering ahead today, racking up its third consecutive day of gains as traders position themselves for a speech tonight by US President Donald Trump...
February 17, 2017
Golds rally may falter
The gold price has racked up its 2nd straight day of gains today on the back of US dollar weakness and doubts over an interest rate hike next month from the US Federal Reserve...
February 16, 2017
Where is black gold heading?
The Euro is slowly going down and this is not brought on by the Eurozone situation. Instead, this is fueled by the U.S. Dollar. Yesterday, Janet Yellen gave a speech in the Senate Banking Committee emphasising the fact that it Is not quite right to use the wait-and-see stance regarding the interest rate hike...

FIBO Group Rating
Fort Financial Services Rating
 FXTM Rating
XM Rating
FOREX.com Rating
Cms Trader Rating

Empire Option Rating
Dragon Options Rating
Migesco Rating
Anyoption Rating
Porter Finance Rating
Banc De Binary Rating