Brent: oil is falling to new lows on 20.08.2015

August 20, 2015

Current trend

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.

Trading tips

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
LiteForex information  LiteForex reviews

October 25, 2016
US flash Markit PMI jumped 1.7 points to 53.2 in October
Asian stock markets are mostly down, as the positive confidence indicators out of Europe and the U.S. yesterday were overshadowed by weak GDP numbers from South Korea, which weighed on most markets. Topix and Nikkei outperformed, with a weaker Yen underpinning exporters...
October 25, 2016
Fed speech, flash PMI push dollar to a fresh 8-month high
Marking the final day of Fed speeches ahead of the one-week blackout period starting today, FOMC voting member, Bullard said that December was most likely for a rate hike...
October 25, 2016
M&A activities drove equities, focus shifts to earnings
Equity markets began the week on a positive note with M&A activities, positive earnings, and better than expected manufacturing data from the Eurozone and U.S. all boosting appetite to risk...

FIBO Group Rating
Grand Capital Rating
Larson&Holz IT Ltd Rating
FxPro Rating
FXCM Rating
FBS Rating

Anyoption Rating
24option Rating
TopOption Rating
TropicalTrade Rating
Empire Option Rating
Beeoptions Rating