Having risen at the beginning of the week, the price of Brent crude oil declined yesterday. The price is returning to its record lows and, in the short term, might be trading flat for a while.
Negative dynamics resumed amid the publication of the Fed Interest Rate Decision. US interest rates were raised by 25 basis points to 0.5%. However, a growth in the American currency did not last long as market sentiment changed when a press conference regarding monetary policy started. Fed Chair Janet Yellen pointed out that the Regulator is going to keep its monetary policy quite loose despite of an initial rate increase, the importance of which should not be overstated.
Support and resistance
Bollinger Bands indicator on the daily chart is directed down, while the price range remains quite wide. MACD is declining and keeping a weak sell signal. Stochastic has left the oversold zone and turned horizontally.
The indicators recommend waiting for clearer trading signals.
Support levels: 37.00, 36.20 (14 December low), 35.75, 35.00.
Resistance levels: 38.00, 38.77, 39.44 (11 December level), 40.00 (psychologically important level), 40.46, 41.00, 42.07.
Long positions can be opened when the price rebounds from the level of 37.00 and overcomes 37.70 (if technical indicators confirm an upward correction) with targets at 38.75, 39.40 and stop-loss at 36.60. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 36.90 with targets at 36.00, 35.50 and stop-loss at 37.20. Validity – 2-3 days.