The price of Brent crude oil continues growing and has already tested the level of $41 per barrel but has not managed to consolidate above this mark yet. The price is supported by recent data on a 60% fall in the number of US drilling rigs and expectations of Russia-OPEC meeting. The oil producers are expected to reach a deal on freezing oil output at current levels. Moreover, Latin American oil producers hold their meeting on 11 March during which they will discuss measures aimed at stabilizing oil prices.
Support and resistance
On the 4-hour chart, the price has broken out the upper MA of that suggests a possibility of a downward correction to 38.55. histogram is in the positive zone, and its volumes are gradually falling.
Support level: 40.00, 39.00, 38.29, 37.05.
Resistance levels: 41.00, 42.00, 43.00, 44.00.
Short positions can be opened after the price breaks down and consolidates below the level of 40.00 with targets at 39.00, 38.26 and stop-loss at 40.40.
Long positions can be opened after the price breaks out and consolidates above the level of 41.00 with targets at 42.00, 43.00 and stop-loss at 40.65.