Brent: price under pressure

December 25, 2015

Current trend

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.

Trading tips

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
LiteForex information  LiteForex reviews

January 23, 2017
Can Supreme Court Ruling Help GBPUSD Remain Bullish ?
Tomorrow, Tuesday 24 January, around 09:30 GMT, the UK Supreme Court will release the Brexit lawsuit Ruling, on whether the UK Prime Minister Theresa May will need the UK parliament’s approval to invoke Article 50 of the Lisbon Treaty, to leave the EU...
January 20, 2017
Cautious EURUSD Ahead of ECB Press Conference
USD, and the US government bond yields, surged last night following Fed president Janet Yellen’s speech to the Commonwealth Club in San Francisco...
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...

OANDA Rating
FOREX.com Rating
Fort Financial Services Rating
EXNESS Rating
FIBO Group Rating
FxPro Rating

Beeoptions Rating
99Binary Rating
UKoptions Rating
Dragon Options Rating
Empire Option Rating
Anyoption Rating