The Oil market is in at a key pricing level whereby a ceiling has been put in place since Aug 2015.
The $54 level has been tested 4 times, and failed on each occasion with a notable retracement seen on each occasion.
If a break above this price ceiling is made, a buy order should be initiated with a target of $60.
Only sell if fundamental news comes out...
Oil is moving down since it find resistance around 51 USD, this is a strong level.
The first support zone is around 46,25. And a bigger support zone can be found around 42 USD.
For the short term, Brent Oil can move lower to 46,25 - 46,50. When this level will break, the next stop is around 42 USD.
Brent clocked 5-month high of $46.10 and trades around the same in early Europe today. Markets ignored a record high weekly inventory buildup reported by US government and cheered IEA’s forecast of sharp drop in non-OPEC output in 2016
Formation – Rising channel
Resistance – $46.47, $47.65, $47.97
Support – $44.90, $43.32, $42.51-42.27
Brent’s day end...
Chart forming mild upward trend after yesterday drop
RSI still showing upward trend, confirming resistance had been formed for bullish trend,
Risk level moderate.
