Since the beginning of the week, the price of Brent crude oil significantly grew and reached its highest level since August at 53.47.
The price is rising amid some news that the OPEC countries could reduce their oil output, and after the publication of the FOMC Minutes, which made it clear the American regulator is not in rush to increase its interest rates. The weakening Dollar is giving a substantial support to commodities markets.
Support and resistance
The price remains under the strong resistance level at 54.26.
MACD the histogram of which is in the positive zone and above its signal line, give strong buy signal. %K and %D lines of the Stochastic are in the overbought zone indicating a price reverse is possible.
Support levels: 53.19 (Asian session lows), 51.25 (yesterday low), 50.00 (psychologically important level).
Resistance levels: 54.26 (50% Fibonacci correction), 57.10 (61.8% Fibonacci correction), 59.59 (10 July high).
Long positions can be opened after the price consolidation above the level of 54.26 with targets at 57.00, 59.00 and stop-loss at 54.00.
Short positions can be opened from the level of 53.10 with the target at 51.30 and stop-loss at 53.50.