2012-08-01 17:07:54
1. Current trend of the crude oil BRENT
Yesterday the price for the “black gold” continued its downward movement. This trend was driven by investors’ expectations that additional measures to stimulate economy will be introduced are decreasing. Attention of investors is focused on the meetings of ECB, US FR and Bank of England. Decisions that will be made by the American and European regulators are unknown which creates uncertainty in the market. Despite expectations, macro-economic US data demonstrated good results. Consumer confidence index rose to 65.9 points in July, increasing by 3.2 points versus 62.7 points in June. House price index showed significant rise as well, increasing by 0.91%. Amid such positive statistics chances that the third round of quantitative easing will be introduced are very low, which affects oil price. The main issue in Europe is whether the European regulator will gain support of the managing board of ECB before he promises to take measures. Demand for oil was supported by the US statistics about the US oil reserves. According to the released data oil reserves has decreased by 11.6 billion barrels.
2. Important levels (Support and Resistance)
Today “Bulls” will be targeted at 106.00; next target will be the level of 108.00. Resistance levels will be 104.10 and 102.30.
3. Best entry/exit points
The best points for sale will be at the level of 104.00 with protective orders at the level of 105.50 The best level for buying contracts is 106.35.
4. Supporting facts
Main factors that affect quotes for oil price is expectations of the decisions that will be made at the meeting of the central banks of Europe and the US. The data on reserves which will be issued by the US EIA will be also of importance. According to the forecast oil reserves reduced by 1 billion bar.
Yesterday the price for the “black gold” continued its downward movement. This trend was driven by investors’ expectations that additional measures to stimulate economy will be introduced are decreasing. Attention of investors is focused on the meetings of ECB, US FR and Bank of England. Decisions that will be made by the American and European regulators are unknown which creates uncertainty in the market. Despite expectations, macro-economic US data demonstrated good results. Consumer confidence index rose to 65.9 points in July, increasing by 3.2 points versus 62.7 points in June. House price index showed significant rise as well, increasing by 0.91%. Amid such positive statistics chances that the third round of quantitative easing will be introduced are very low, which affects oil price. The main issue in Europe is whether the European regulator will gain support of the managing board of ECB before he promises to take measures. Demand for oil was supported by the US statistics about the US oil reserves. According to the released data oil reserves has decreased by 11.6 billion barrels.
2. Important levels (Support and Resistance)
Today “Bulls” will be targeted at 106.00; next target will be the level of 108.00. Resistance levels will be 104.10 and 102.30.
3. Best entry/exit points
The best points for sale will be at the level of 104.00 with protective orders at the level of 105.50 The best level for buying contracts is 106.35.
4. Supporting facts
Main factors that affect quotes for oil price is expectations of the decisions that will be made at the meeting of the central banks of Europe and the US. The data on reserves which will be issued by the US EIA will be also of importance. According to the forecast oil reserves reduced by 1 billion bar.