On Thursday, the price of Brent crude oil showed volatile dynamics. During most of the day, it was falling but after the publication of the Fed rates decision, according to which interest rates stayed at current 0.25%, oil grew.
The regulator stated that interest rates remained unchanged due to a sluggish growth of the world economy. At the same time, the regulator was positive on future prospects for the American economy and inflation in the country. The labour market also remains healthy and demonstrates signs of improvement.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally, while the price is near the middle MA of the indicator and trying to consolidate above it. MACD is growing and giving a moderate buy signal. Stochastic is approaching the overbought zone that could indicate an erosion of the bullish sentiment.
The indicators recommend considering purchases in the short-term, or wait for a clearer trading signal.
Support levels: 48.19 (17 September low), 47.41, 46.63, 46.00 (14 September lows).
Resistance levels: 49.24 (local high), 50.00 (psychologically important level), 50.89, 51.50, 52.15, 53.00, 53.50, 54.16 (31 August high).
Long positions can be opened after the breakout of the level of 50.00 (with the appropriate indicators signals) with the target at 51.50 and stop-loss at 49.40. Validity – 1-3 days.
Short positions can be opened from the level of 48.00 with targets at 47.00 (short-term), 46.00 (medium-term) and stop-loss at 48.50. Validity – 2-4 days.