On Monday, oil prices are falling despite declining US Dollar.
The price remains under pressure amid few factors, such as excess of supply on world markets, increasing output by the OPEC countries, expectations of Iran starting exporting at full capacity, and a continuous fall of the Chinese stock market.
Last week, experts from the Goldman Sachs stated that in October the price of Brent crude oil is going to trade at $38 per barrel, and is likely to fall further to $20 per barrel.
Support and resistance
The price remains at the support level of 47.45, the opening and closing level of the last 6 days.
Short positions look preferable as long as the price remains below the levels of 48.50 (ЕМА50), 49.00 (ЕМА144), 49.90 (ЕМА200 on the 4-hour chart). However, the breakout of the level of 51.30 (EMA50 on the daily chart) can resume an upward trend.
If the downward trend continues, the price will head towards 42.50 (year lows).
On the 4-hour chart, OsMA and Stochastic turned to sales, while on the daily chart the indicators give contradicting signals.
Support levels: 47.45, 46.65, 45.25.
Resistance levels: 48.50, 49.00, 49.90, 51.30.
Open short positions from the current levels and from 48.50, 49.00, 49.70with targets at 47.00, 46.65, 46.00, 45.25 and stop-loss at 50.10.
Long positions are not considered yet.