Yesterday, Bent crude oil failed to consolidate at the achieved positions. The prices grew, supported by the announcement of the Head of the European Central Bank who confirmed the readiness of the Regulator to further stimulate the economy in order to accelerate inflation growth. Moreover, the ECB lowered again its forecast for the further economic growth.
The oil prices were declining amid the growth in crude inventories which increased by 4.7 million barrels in a week against the forecast of 30-50 K barrels.
Support and resistance
Bollinger Bands indicator on the daily chart keeps flat dynamics; at the same time, the price range is trying to widen. MACD is growing and still giving a weakening buy signal. Stochastic stepped away from the overbought zone and is turning to sideways.
According to the indicators, long positions are still valid, however, it is not recommended to place new orders right now.
Support levels: 49.24, 48.10, 47.50 (near 2 September low), 46.63, 46.00, 45.00, 43.97, 43.00, 42.08 (24 August low).
Resistance levels: 50.30, 51.50, 52.15 (near 3 September high), 53.00, 53.50, 54.16 (31 August high).
Open long positions either after the break out of the level of 51.50 with targets at 53.00, 53.50 and stop-loss at 50.30, or when a correctional decline finishes and the pair turns up near the level of 48.10 with targets at 50.30, 51.00 and stop-loss at 47.00.
After the breakdown of the level of 48.10, open short positions with the target at 46.00 and stop-loss at 49.24.