On Wednesday, the price of Brent crude oil significantly fell reaching more than 2-month lows despite declining this week US Dollar.
The price was pressured by data on the US Crude Oil Stocks change for the last week that grew well above forecasts, and data on Industrial Production in China that came out on Wednesday. In October, Industrial Production growth slowed from 5.7% to 5.6%, while experts predicted a 5.8% growth.
Support and resistance
Bollinger Bands on the daily chart is moving down, while the price range is widening. At the same time, the indicator has formed a signal for correctional purchases. MACD keeps falling. Stochastic is in the oversold zone and trying to turn up.
The indicators recommend waiting for clearer trading signals.
Support levels: 45.48 (local low), 45.00 (end of August low), 43.97, 43.00, 42.08 (24 August low).
Resistance levels: 46.00 (local high), 46.27 (27 October low), 46.80, 47.32, 48.00, 48.58, 49.00.
Short positions can be opened after the breakdown of the level of 45.50 with the target at 44.40 and stop-loss at 46.00. Validity – 1-3 days.
Long positions can be opened after the breakout and consolidation above the level of 47.00 with targets at 47.80, 48.30 and stop-loss at 46.70. Validity – 2-3 days.Publication source