2016-11-10 14:30:29

Review and dynamics
At the end of last month the price of Brent has broken down psychologically important level of $50.00 per barrel. Up to date, the price has dropped by another $4 per barrel.
The price has broken down the key support level of 47.45 (ЕМА200, ЕМА144 on the daily chart) and in the past few days it has been traded now near the strong support level of 46.20 (Fibonacci 50.0% after the decline from $65.30 to the lows of 2016 at the level of 27.00).

Our opinion
Oil market is pessimistic about successful outcome of all preliminary OPEC agreements on the reduction of oil production and because of the victory of Donald Trump in presidential election in the United States.
The decline in oil price is likely to resume.
In our previous reports we assumed that the price of crude oil Brent may quickly return to the area of support levels of 46.20 and 47.45. This forecast proved to be correct.

In case of the decline below the level of 46.20 the decline in price may continue. The nearest targets will be at the levels o9f 43.65 and 41.70 (Fibonacci 38.2% and lows of July/August).
As an alternative scenario the price can go above the level of 47.45 and continue to rise up to the levels of 50.00 and 50.70 (Fibonacci 61.8%).
On the 4 -hour, weekly and monthly charts the indicators OsMA and Stochastic give signals for short positions.

Support levels: 46.20, 45.00, 43.65, 41.70 and 41.00.
Resistance levels: 47.45, 50.00, 50.70, 51.10, 53.00, 53.70, 55.00 and 56.00.


Trading tips
Sell on the market. Stop-Loss: 46.95. Take-Profit: 46.00, 45.00, 44.00, 43.65, 41.70 and 41.00.
Buy Stop: 47.10. Stop-Loss: 46.70. Take-Profit: 47.45, 48.00, 50.00, 50.70, 51.10, 53.00 and 53.70.

Breakout of the level of 47.45
Breakout of the level of 47.45

Indicators give sell signals
Indicators give sell signals