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 on the with the lower border at the level of 43.00.
OsMA and 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.
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.