The price of Brent crude oil continues falling while trading at its 11-year lows.
The price remains under pressure amid significant excess of supply on the market as major oil-producing countries try to compensate a reduction in profits by increasing exporting volumes. Furthermore, amid increasing exports demand for oil is falling due to slowing Chinese economy. In addition, the price is pressured by strengthening US Dollar as all transactions are processed in Dollars.
Therefore, growth in prices is unlikely until the Chinese economy recovers or the USD weakens. However, considering some overbought in the USD, an upward correction in oil prices can be expected.
Support and resistance
In the nearest term, the price can grow to the upper border of the descending channel at the levels of 42.10, 43.15. After that, the price is likely to consolidation between the levels of 45.00 and 35.00.
Support levels: 32.00, 30.50, 28.20, 25.55, 23.00.
Resistance levels: 34.50, 34.80, 38.70, 42.10, 43.15, 47.05, 51.00.
Long positions can be opened from current prices with the target at 42.10 and stop-loss at 30.20.