On Tuesday, the price of Brent crude oil resumed its growth after a recent decline. The price was supported by rising EU stock indexes and macroeconomic releases, indicating the faster-than-expected pace of the European economic growth. Moreover, China’s statistics show that country’s oil consumption has increased quite unexpectedly. In August, 6.297 million barrels per day were imported which is 331K bpd more than a year ago.
Support and resistance
Bollinger Bands indicator on the daily chart is growing; the price range is remaining almost unchanged. MACD restored its buy signal and continued growing. Stochastic is trying to turn up near the oversold zone.
The indicators recommend long positions in the short run.
Support levels: 49.24, 48.10, 47.41 (7 September low), 46.63, 46.00, 45.00, 43.97, 43.00, 42.08 (24 August low).
Resistance levels: 50.00, 50.89, 51.50, 52.12, 53.00, 53.50, 54.16 (21 August local high).
After the breakout and consolidation above the level of 50.00, open long positions with targets at 51.50, 52.00 and stop-loss at 49.20, 49.00.
If the price rebounds down from the level of 50.00, open short positions with the target at 47.41 and stop-loss at 50.80.Publication source