2016-07-11 13:36:45

Review and dynamics
After reaching the level of 52.80 USD per barrel at the beginning of June, the price of crude oil Brent started to decline.
On the daily chart a new descending channel has been formed with the lower limit close to the level of 45.40 (ЕМА144 on the daily chart).
On daily, weekly and 4-hour charts the indicators OsMA and Stochastic give sell signals.

Our opinion
Currently, support level is 46.90 (ЕМА50 on the weekly chart). Next strong support levels are 46.20 (Fibonacci 50.0% to the decline from the level of 65.30 to the lows of 2016 at the level of 27.05) and 45.90 (ЕМА200 on the daily chart). Breakout of support level of 45.40 (ЕМА144 and the lower line of the descending channel on the daily chart) may trigger downtrend in the medium-term. In this case the price will go to support level of 41.70 (Fibonacci 38.2%), 36.05 (Fibonacci 23.6%) and 32.30, 30.00.
If the price goes above the level of 50.70 (Fibonacci 61.8%). the rise may continue.
However, fundamental factors are in favour of the “bearish” positions.

Support levels: 46.90, 46.20, 45.90, 45.40, 44.00, 42.50 and 41.70.
Resistance levels: 48.30, 49.00, 49.40, 50.00, 50.70, 51.00, 52.00 and 52.80.


Trading tips
Sell on the market. Stop-Loss: 47.10. Take-Profit: 46.20, 45.90, 45.40, 45.00, 44.00, 42.50 and 41.70.
Buy Stop: 47.30. Stop-Loss: 46.80. Take-Profit: 48.30, 49.00, 49.40, 50.00, 50.70, 51.00, 52.00 and 52.80.

At the level of 46.90
At the level of 46.90

In the descending channel
In the descending channel