Yesterday the price of Brent crude oil continued falling amid the EIA Crude Oil Stock change data from the US that showed an increase in reserves of 0.234 million barrels.
The price remains under pressure due to a number of factors, such as the excess of supply on the world market, increasing output in major oil-producing countries, strengthening in the US Dollar amid monetary policy tightening by the Fed, slowing Chinese economy.
In the medium-term, the price continues being pressured, while a consolidation below the psychologically important level of $30.00 per barrel would open the way towards the level of 20.00.
Support and resistance
On the 4-hour chart, OsMA and Stochastic give a weak signal for correctional growth. The upward correction could continue to the levels of 31.00 (ЕМА50 on the hourly chart), 31.40 (upper border of a descending channel on the hourly chart), 32.50 (the middle of a descending channel on the 4-hour chart), 33.00 (ЕМА50 on the 4-hour chart), 34.50 (upper border of the descending channel on the 4-hour and daily charts).
On the daily and weekly chart, the indicators are in the oversold zone.
Support levels: 30.00, 29.50, 29.00.
Resistance levels: 31.00, 31.40, 32.00, 32.50, 33.00.
Long positions can be opened from the level of 31.10 with the target at 32.60 and stop-loss at 30.70.
Short positions can be opened below the level of 30.00 with targets at 29.50, 29.20 and stop-loss at 30.30.