Brent: decline has resumed on February 05, 2016

February 5, 2016

Since the opening of the trading day the price of crude oil Brent is declining. On the hourly chart the price has broken down the first support level of 34.35 (ÅÌÀ50), which is ÅÌÀ200 on the four-hour chart. Breakdown of support levels of 33.75 (ÅÌÀ144) and 33.40 (ÅÌÀ200 on the hourly chart) can trigger further decline in price.

Consolidation below the level of 32.30 (local lows) will lead the price to psychologically important level of 30.00. Breakdown of this level will trigger rapid decline to the recent lows of 27.00.

Now, the price is at the low limit of the upward channel on the four-hour chart with the upper limit at the level of 39.00. Therefore, a chance of rise in price is also possible. However, the rise in the medium-term can be possible only if the price goes above the recent highs of 36.00.

According to fundamental data, further decline in price is more likely. 

Support levels: 33.75, 33.40, 32.75 and 32.30. 
Resistance levels: 34.35, 35.00, 36.00 and 36.50.

Trading tips

Sell Stop: 33.70. Stop-Loss: 34.50. Take-Profit: 33.00, 32.75, 32.30, 32.00, 30.00, 29.70, 29.00, 28.00, 27.50 and 27.00.
Buy Stop: 34.90. Stop-Loss: 33.60. Take-Profit: 35.90, 36.50, 37.00, 38.00 and 38.40.

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