The price of Brent crude oil continues falling amid a ban lift on oil exports from the US and the OPEC decision not to reduce production quotas for countries in the cartel. Many experts, however, doubt that American oil can significantly affect the price on the market. However, in the beginning of the next year sanctions could be lifted from Iran that would increase supply excess on the market and will further pressure the price.
At the same time, it is worth noting that since ban on US exports was lifted the price of WTI crude exceeded the price of Brent crude.
Support and resistance
The price broke out the upper border of a descending channel that was formed in the end of November and is correcting upward. However, the main trend remains downward.
A/D and MACD indicators suggest a possibility of an upward correction in the short-term.
Support levels: 35.85 (22 December low), 35.00.
Resistance levels: 37.20, 38.00, 38.60, 40.00, 41.35.
Short positions can be opened from current prices with targets at 36.30, 35.85 and stop-loss at 38.00. Validity – 2-3 days.
Long positions can be opened after the breakout of the level of 38.60 with targets at 40.00, 41.35 and stop-loss at 37.20.Publication source