On Tuesday, the price of Brent crude oil continued declining. Concerns about oversupply of the oil market still have a strong negative effect on the price of oil.
Market participants are waiting for the results of the upcoming OPEC meeting, due on Friday. OPEC is expected to keep its output target unchanged. Moreover, some analysts suggest that the price of oil might fall to $35 per barrel if the Federal Reserve raises interest rates at its December meeting.
Support and resistance
Bollinger Bands indicator on the daily chart is still directed horizontally, while the price range remains unchanged. MACD is keeping its strong downward trend. Stochastic has reached the oversold zone.
It is recommended to wait for clearer trading signals.
Support levels: 43.90 (1 December low), 43.43, 43.00 (near 16 November low), 42.08 (24 August low).
Resistance levels: 44.43, 45.00, 45.56, 46.00, 46.35 (24 November high), 46.80, 47.32, 48.00.
Long positions can be opened if the price turns up at the level of 44.00 (with appropriate indicators signals) with targets at 44.70, 45.50 and stop-loss at 43.70. Validity – 1-3 days.
Short positions can be opened after the breakdown of the level of 43.90 with the target at 43.00 and stop-loss at 44.20. Validity – 2-3 days.