Geopolitical factors have a strong effect on the price of oil. The recent incident with Russian military aircraft, which was shot down by Turkish warplanes, was of no exception. Amid rising political tensions between Turley and Russia, the price of oil grew by more than $1, having reached its highs at 46.45.
But today, the price has started correcting down quite expectedly. Market participants are waiting for the publication of Crude Oil Stocks change statistics, due in the US.
Support and resistance
On the 4-hour chart, technical indicators are giving mixed signals. Bollinger Bands are directed upward, indicating further growth of the price. At the same time, the price broke out the upper line of the price range that suggests high possibility of a downward correction to the middle MA, towards 45.00. On the other hand, MACD indicates a decline in Bullish sentiment. The histogram is in the positive zone, but its volumes are falling.
Support levels: 45.00, 44.00, 43.10.
Resistance levels: 46.44, 47.00, 47.80.
Short positions can be opened after the consolidation below the level of 45.00 with targets at 44.00 and 43.10.
Long positions can be opened after the consolidation above the level of 46.44 with targets at 47.00 and 47.80.