2016-07-22 12:41:20

Review and dynamics
Crude oil Brent has been declining in July. On the daily chart a new descending channel prices has been formed with the lower limit near the level of 44.50. The price is at the strong support levels of 46.20 (Fibonacci 50% and ЕМА200 on the daily chart) and 45.65 (ЕМА144).
On 4 hour, daily and weekly charts the indicators OsMA and Stochastic give signals to sell.

Our opinion
Oil prices are going down due to negative fundamental factors. Breakdown of the level of 45.65 may trigger further decline to support level of 44.50 and continuation of the downtrend.
Next strong support levels are 41.70 (Fibonacci 38.2% to the decline from 65.30 to the lows of 2016 at the level of 27.05) and 36.05 (Fibonacci 23.6%).
Further targets of decline are 32.30 and 30.00.
If the pair goes back above the level of 48.00 (ЕМА200 on 4-hour chart), uptrend in price will resume. Meanwhile, fundamental factors are in favour of short positions.

Support levels: 45.65, 44.50, 43.50 and 41.70.
Resistance levels: 46.20, 47.00, 48.00, 49.00, 49.40, 50.00, 50.70, 51.00, 52.00 and 52.80.


Trading tips
Sell on the market. Stop-Loss: 46.50. Take-Profit: 45.00, 44.50, 44.00, 43.50 and 41.70.
Buy Stop: 47.20. Stop-Loss: 46.10. Take-Profit: 48.00, 49.00, 49.40, 50.00, 50.70, 51.00, 52.00 and 52.80.

Indicators suggest to open short positions
Indicators suggest to open short positions

Support levels are 45.65 and 44.50
Support levels are 45.65 and 44.50