The price of Brent crude oil fell after the OPEC meeting at which it was decided to keep oil production unchanged at the level of 31.5 million barrels per day.
Oil market participants are getting ready for a hike in US interest rates and pricing gradual strengthening in the USD into the market. Moreover, the price of oil, in the medium term, will remain under pressure from geopolitical tensions and global economic slowdown.
Support and resistance
The price of Brent crude oil is trading within a descending channel on the daily chart with the lower border near the level of 39.00.
According to OsMA on the daily and weekly charts, the price will continue declining. Stochastic remains in the oversold zone, indicating that the downward trend in the price is strong.
Nevertheless, the indicators are giving buy signals on the 4-hour chart that suggests a possibility of a short-term correction towards 42.30 (EMA50 and the upper border of a downward channel on the 4-hour chart), 43.35 (November lows), 44.20 (EMA144 on the 4-hour chart and the upper border of a downward channel on the daily chart) and 45.50 (EMA50 on the daily chart).
Support levels: 40.00, 39.50, 39.00.
Resistance levels: 42.00, 42.30, 43.00, 43.35, 44.00, 44.20, 45.00, 45.50.
Short positions can be opened below the level of 39.90 with targets at 39.40, 39.00 and stop-loss at 40.30.
Long positions can be opened in case of the breakout of the level of 40.70 with the target at 41.95 and stop-loss at 40.20.