Late in August, the price of Brent crude oil fell to the level of $42.15 but then, amid growing demand, recovered up to $54 per barrel.
This week, the price of oil is declining due to the USD significant strengthening. The decline was reinforced by a slowdown of China’s economy, as it is the main oil consumer.
Today, the main factors, influencing the price dynamics, are the data from the meeting of 6 largest Arab oil importers: Saudi Arabia, UAE, Qatar, Kuwait, Bahrain and Oman, as well as the US statistics on Crude Oil Stocks change, which is expected to indicate a decrease. The price of oil may get additional support from declining demand for the USD.
Support and resistance
MACD histogram is in the negative zone, its volumes are falling. The price declined to the middle MA of Bollinger Bands and now is likely to grow to the upper MA 53.00. The price moved to an upward channel and tends to go up towards the resistance levels of 53.30, 54.00, 55.85.
Support levels: 46.70, 45.50, 44.30, 42.65, 42.15.
Resistance levels: 48.20, 50.50, 53.30, 54.00, 55.85, 59.50, 62.00.
Open long positions from the current level of 47.75 with targets at 53.30, 55.85 and stop-loss at 46.40.