On Thursday, the price of Brent crude oil significantly fell and moved away from local highs near the level of 46.35.
However, oil remains under pressure amid excess of supply on the market and strengthening US dollar, which is growing prior to a possible interest rate hike in the US at the Fed’s December meeting.
Support and resistance
Bollinger Bands on the daily chart is moving up while the price range is narrowing. MACD is slowly growing and giving a weak buy signal. Stochastic bounced off the border of the overbought zone and falling.
The indicators recommend waiting for clearer trading signals.
Support levels: 45.00 (lower border of a short-term flat channel), 43.97, 43.43, 43.00 (16 November lows).
Resistance levels: 45.56 (local high), 46.00, 46.35 (24 November high), 46.80, 47.32, 48.00, 48.58, 49.00.
Long positions can be opened after the price rebound from the level of 45.60 with the target at 46.45 and stop-loss at 45.00. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 44.55 with the target at 43.50 and stop-loss at 44.80. Validity – 2-4 days.