Ahead of the meeting of OPEC and non-OPEC oil market experts, during which a reduction of oil production and exports is to be discussed, the price of Brent crude oil is trading with no certain direction.
Today, EIA Crude Oil Stock is expected to indicate a decline by 3.7 million barrels. The price of oil is under pressure from a slowdown of China’s economy and Iranian oil export recovery. At the same time, political tensions in the Middle East, a decline in US oil production and lowering expectations that the Fed will increase interest until the year is out support the price of oil .
Support and resistance
OsMA and indicator on the 4-hour and recommend short positions. The price broke down the of 50.00 ( on the daily and 4-hour charts) and is heading to the level of 47.00 (September lows), the breakdown of which may lead to a decline towards year lows at 42.50.
An upward dynamics would become possible if the price consolidates above the level of 51.00.
Support levels: 48.00, 47.30, 47.00.
Resistance levels: 49.00, 50.00, 50.50, 51.00.
Pending Sell Stop orders can be placed at the level of 47.80 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 49.10 with targets at 50.00, 51.00, 51.50, 52.00 and stop-loss at 48.60.