After a significant fall at the beginning of the week, on Tuesday the price if Brent crude oil grew slightly. Oil is gradually recovering amid looming publication of the Fed’s meeting on Thursday. The majority of experts assume that the regulator is not going to hike its interest rates at tomorrow’s meeting and will delay the decision until December.
In addition, oil found a support in shrinking reserves and falling output in the US. According to estimates, last week oil reserves in the US shrank by 1.8 million barrels. The official data is going to be published today.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally, but the price range stopped narrowing. MACD is trying to turn up. Stochastic is near the middle of its range and growing.
The indicators recommend waiting for a clearer trading signal.
Support levels: 41.41, 46.63, 46.00 (local low), 45.00, 43.97, 43.00, 42.08 (24 August low).
Resistance levels: 48.10 (local high), 49.24, 50.00 (9 September highs), 50.89, 51.50, 52.15, 53.00, 53.50, 54.16 (31 August high).
Long positions can be opened after the breakout and consolidation above the level of 48.10 (with the appropriate indicators signals) with targets at 49.24, 50.00 and stop-loss at 46.63.
Short positions can be opened after the breakdown of the level of 46.00 with the target at 45.00 and stop-loss at 47.00.Publication source