Brent: short-term upward correction

December 10, 2015

Current trend

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.

Trading tips

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.

Publication source
LiteForex information  LiteForex reviews

January 19, 2017
Is equilibrium out of reach?
Let’s check what’s going on with Oil before turning our attention to the Russian Ruble. “Black gold” is forming a reversal pattern next to the key level of 52.10. The only matter is that this pattern is above the horizontal level, but the 52.10 level can potentially become the neckline of our pattern...
January 18, 2017
Trump Inauguration Market Outlook
Friday, January 20, 2017 will mark the historic inauguration of what promises to be a highly unconventional US presidential administration...
January 17, 2017
Oil spikes higher on Saudi Oil minister comments
Oil has spiked higher on Al Falih comments in Davos (Saudi oil minister). He said during a panel discussion at WEF in Davos that there will be inflation in the cost of doing business in the oil industry, following the squeeze that accompanied the decline in crude prices...

Z.com Trade Rating
XM Rating
OANDA Rating
Grand Capital Rating
EXNESS Rating
Larson&Holz IT Ltd Rating

TropicalTrade Rating
TopOption Rating
OptionBit Rating
24option Rating
OptionFair Rating
Binary Brokerz Rating