The price of crude oil Brent continues to hold relatively high levels. Yesterday, the quotes reached annual highs at the level of 66.89. Experts associate the rise in the price of Brent with investors’ expectation of the reduction of the oil reserves in the USA to the level of the actual demand. The release of economic statistics, which can affect movement in oil prices, is not scheduled for today.
Support and resistance
At the moment, Brent is traded at the high levels. However, in order to continue the rise, strong fundamental drivers are required. It is likely that the price will slightly decline as part of the technical correct. On the four-hour chart MACD histogram is in the positive zone, but its volumes are decreasing, which indicates the decline in the buyers’ activity. Bollinger bands demonstrate slight divergence; however they do not give a clear signal.
Resistance levels: 66.88, 68.00 and 69.00.
Support levels: 65.90, 65.15 and 64.00.
If the current trend maintains, sell positions can be opened from the current levels with the nearest target of 65.15. Breakdown of the level of 65.15 will open the way to 64.00. Upward movement can continue only after consolidation of the price above the level of 67.00. In this case the “bulls” will try to reach the highs of 68.00.