The price of Brent crude oil significantly fell amid yesterday’s macroeconomic statistics on the EIA Crude Oil Stocks change in the US and reached $44 per barrel. According to the data, for the week oil reserves grew by 4.2 million barrel to 487 million barrels.
Today the price is in an upward correction after the substantial fall.
Support and resistance
On the 4-hour chart, technical indicators point out to a continuation of the correctional growth. Bollinger Bands is moving down suggesting the fall will continue. At the same time, the price broke down the lower MA of the indicator, which suggests a high possibility of the upward correction towards the middle MA near the level of 46.20. MACD’s histogram is in the negative zone but its volumes are falling.
Support levels: 43.90, 43.00, 42.00.
Resistance levels: 45.40, 46.20, 47.80, 49.00.
Long positions can be opened from current levels with the target at 46.00, and if the price consolidates above the level of 46.20, the growth continues towards 47.80.
Short positions can be opened after the price consolidation below the level of 43.90 with the target at 42.00.