LiteForex_Official

Brent: price strengthened slightly

FX:UKOIL   CFDs on Crude Oil (Brent)
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Current trend

Yesterday, the price of Brent crude oil strengthened slightly and consolidated around $44.00-44.50 per barrel.
The Energy Information Administration released Crude Oil Stocks change that indicated an increase by 0.252 million barrels in stocks of crude oil in the US, well below the previous 4.224 million rise and the forecast of a 1.600 billion growth.

At the same time, the USD failed to get support from FOMC Minutes. Though a rise in the US interest rates is still possible, some Fed officials suggest that it the US economy is not yet ready for it.
Nevertheless, in the medium term, the price of oil will remain under pressure due to the oversupply of the global oil market.

Support and resistance

The price is trading within a downward channel on the daily chart with the lower border at the level of 43.00.
OsMA and Stochastic indicators on the daily and 4-hour charts are turning to long positions, so an upward correction may reach the levels of 45.25 (EMA50 on the 4-hour chart), 47.00 (EMA144).

Support levels: 44.00, 43.50, 43.00, 42.50.
Resistance levels: 44.50, 45.00, 45.25, 45.50, 46.00, 47.00, 48.00.

Trading tips

Short positions can be opened from the level of 44.20 with targets at 44.00, 43.50, 43.00, 42.50 and stop-loss at 44.60.
Long positions can be opened from the level of 44.70 with targets at 45.00, 45.25, 45.50, 47.00 and stop-loss at 44.30.

Comments

Thanks for sharing this analysis!
If I read your trading tips correctly, at the current level of 44.20, you would still be short biased?
I have been watching Brent for a while and am looking for a good entry position for a short-term trade...
Reply
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