Brent crude oil dropped yesterday by over $2 to $56 per barrel after considerable growth. The key factor for skidding was the increase in US oil stocks. According to official data, US commercial oil stocks rose by 10.95 million barrels to 482,4 million barrels, the highest value since 2001. Gasoline stocks increased by 817 thousand barrels.
Support and resistance
On the H4 chart, Bollinger bands are converging, suggesting that the current downward movement will continue. The MACD histogram is in the positive zone, but its volumes are reducing fast, which points to sellers' potency and further downtrend.
Resistance levels: 56.00, 57.00, 58.00, 59.00.
Support levels: 55.30, 54.60, 53.87.
Open short positions at current price with the nearest target at 53.30. The breakdown of this level will surely give access to the next support level at 54.60. Sellers' long-term target will be April's trough of 53.87.