Yesterday the price of Brent crude oil continued falling. The price remains under pressure amid strengthening US Dollar, substantial supply excess and slowing Chinese economy.
Due to declining prices, some countries from the OPEC are calling for an unscheduled meeting of the organisation, which could happen in March 2016.
At the same time, analytical agencies are lowering their forecasts for 2016 average prices. For example, Barclays lowered forecasted price of Brent crude from 60 to 37 Dollars per barrel.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is widening. However, the price is still trading outside of its borders. MACD is slowing its fall keeping a sell signal. Stochastic is in the oversold zone and trying to turn up.
The indicators recommend waiting for clearer trading signals.
Support levels: 30.25 (local low), 30.00 (2004 low), 29.50.
Resistance levels: 31.00 (local high), 32.00, 32.50, 33.00, 34.00, 35.00 (6 January high), 35.85, 36.20.
Long positions can be opened after the breakout of the level of 32.00 (with the appropriate indicators signals) with targets at 32.55, 33.00 and stop-loss at 31.70. Validity – 1-2 days.
Short positions can be opened after the breakdown of the level of 30.40 with targets at 30.00, 29.50 and stop-loss at 30.70. Validity – 1-2 days.