On Wednesday, the price of Brent crude oil fell to new lows at $47 per barrel amid the latest oil reserves data from the US. According to the EIA Crude Oil Stocks Change, oil reserves for the last week grew by 2.6 million barrels, while were forecasted to fall by 0.7 million barrels.
At the same time, the price of oil did not react to the latest FOMC Minutes, in which the Fed expressed growing concerns regarding the future inflation growth. This is lowering markets expectations of the September interest rate hike in the US.
Support and resistance
Bollinger Bands on the daily chart is moving down, while the price range is widening. The indicator signals an upward correction possibility as the price has left the lower border of the range. MACD is falling. Stochastic is in the oversold zone and is trying to turn up.
The indicators recommend keeping existing short positions and consider opening short-term long positions.
Support levels: 46.63 (19 July low), 46.00 (psychologically important level).
Resistance levels: 47.00 (local high), 47.50, 48.10 (support level from 10 August), 48.50, 49.24, 50.30.
Open long positions after the price rebound from the level of 46.63 (with the appropriate indicators signals) with targets at 48.10, 48.50 and stop-loss at 46.00.
Short positions can be opened after the breakdown of the level of 46.63 with the target at 46.00 and stop-loss at 47.00.Publication source