2016-07-28 17:21:57

Review and dynamics
Yesterday’s report by the US Department of Energy about the oil reserves growth in the country, triggered sharp decline in oil prices. Oil prices dropped to 43.50. Yesterday, crude oil Brent fell by 1.2USD per barrel.

With the opening of today's trading day oil price continues to decline. The decline in oil prices in July offset the rise in the previous two months. The price is now at the level of mid - April.

On the daily chart the price has broken down the lower line of the descending channel and consolidated below the key levels of 46.20 (Fibonacci 50% and ЕМА200 on the daily chart), 45.65 (ЕМА144).

On 4 - hour, daily, weekly charts the indicators OsMA and Stochastic give signals to sell.

Our opinion
Oil prices continue to be under pressure from fundamental factors. The decline in the pair may continue with the nearest target of the decline 41.70 (Fibonacci 38.2% to the decline from the level of 65.30 to the lows of 2016 at the level of 27.05). If the decline continues next targets will be At the levels of 36.05 (Fibonacci 23.6%), 32.30 and 30.00.

If the price goes back above the level of 47.30 (ЕМА200 on 4-hour chart) uptrend in the pair will resume. Fundamental factors are in favor of the short positions.

Support levels: 43.30, 41.70, 39.00 and 36.05.
Resistance levels: 44.50, 45.65, 46.20 and 47.30

Trading tips
Sell on the market. Stop-Loss: 44.60. Take-Profit: 43.00, 41.70, 40.00, 39.00 and 36.05.
Buy Stop: 44.70. Stop-Loss: 44.10. Take-Profit: 45.65, 46.20, 47.30, 48.00, 49.00, 49.40, 50.00 and 50.70.

Breakdown of the lower line of the channel
Breakdown of the lower line of the channel

Indicators give sell signals
Indicators give sell signals