2016-08-04 13:23:10

Review and dynamics
Despite yesterday’s data by the US Department of Energy on the increase in oil reserves in the country, oil price unexpectedly went up, due to the fact that gasoline inventories fell by 3.3 million barrels last week. Yesterday, the price of crude oil Brent rose to the level of $43.38 per barrel. With the opening of today's trading day oil prices go down. Now, the price is at the level of the middle of April.
The price dipped below the key support levels of 46.20 (Fibonacci 50%) and 45.65 (ЕМА200 on the daily chart).

Our opinion
Oil price has reached strong support at the level of 41.70 (Fibonacci 38.2% to the decline from 65.30 to the lows of 2016 at the level of 27.05). Fundamental background also puts pressure on the oil prices.
On the weekly chart the indicators OsMA and Stochastic give signals to sell. On 4- hours chart the indicators also give signals for short positions after yesterday's rise in price.
In case of breakout of the level of 41.70, next targets will be at the levels of 36.05 (Fibonacci 23.6%), 32.30 and 30.00.
If the price returns to the levels above 46.20 and 45.65, uptrend can resume.
However, fundamental factors show that short positions will be preferable.

Support levels: 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: 43.40. Take-Profit: 42.00, 41.70, 40.00, 39.00 and 36.05.
Buy Stop: 43.70. Stop-Loss: 44.10. Take-Profit: 44.50, 45.65, 46.20, 47.30, 48.00, 49.00, 49.40, 50.00 and 50.70.

The price can break out the level of 41.70
The price can break out the level of 41.70

Indicators give signals for short positions
Indicators give signals for short positions