The price of Brent crude oil is trading within a narrow range near the level of the beginning of the month.
The price gained support from the President of the ECB statement that the Regulator will further stimulate the EU economy. On the contrary, the price was under pressure when, on Wednesday, US Crude Oil Stocks change indicated a growth by 8.028 million barrels, which is more than 4 million barrels above the forecast.
Lowering expectations of US rate hike before year-end, political tensions in the Middle East and a decline in US oil production may help the price of oil to strengthen.
Support and resistance
The price may remain within the range 47.00-54.00 until the Fed December meeting.
OsMA and indicators on the are turning to long positions; on the 4-hour chart, the indicators are giving buy signals as well. Nevertheless, the growth may be limited by the resistance levels of 49.00 (EMA50), 49.40 (EMA200, EMA144 on the 4-hour chart), 50.00 (EMA50 on the ).
A return to an upward dynamics may become possible only after the consolidation above the level of 51.00. On the contrary, the breakdown of the lower border of the range 47.00 would lead to a decline towards year lows at 42.50.
Support levels: 48.00, 47.30, 47.00.
Resistance levels: 49.00, 49.40, 50.00, 50.50, 51.00.
Pending Sell Stop orders can be placed at the level of 47.90 with targets at 47.30, 47.00, 46.60 and stop-loss at 48.50.
Pending Buy Stop orders can be placed at the level of 48.70 with targets at 49.00, 49.40, 50.00, 51.00, 51.50, 52.00 and stop-loss at 48.30.