Since the middle of the previous week, the price of Brent crude oil continues growing amid weakness of the US Dollar. In addition, the price is supported by expectations of the reduction in output by major world producers. Last Friday, the United Arab Emirates Minister of Energy noted that the OPEC is ready to start coordinated process of output cuts aimed at stabilising oil prices on the market.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally while the price range remains wide. MACD is growing and giving a quite strong buy signals. Stochastic is in the middle of its range and growing as well.
The indicators recommend long positions.
Support levels: 32.63 (local low), 32.00, 31.00, 30.25, 29.50 (11 February low), 28.70, 28.07, 27.00 (20 January low).
Resistance levels: 33.27 (local high), 34.00, 35.00, 36.00 (29 January high), 37.00.
Long positions can be opened after the breakout of the level of 33.27 (with the appropriate indicators signals) with targets at 34.00, 35.00 and stop-loss at 32.50. Validity – 2-4 days.
Short positions can be opened after the price rebound from the level of 33.27 with targets at 32.00, 31.00 and stop-loss at 34.00. Validity – 2-4 days.Publication source