The price of Brent crude oil has been falling over three trading sessions in a row. The price remains under pressure as results of the meeting of Venezuelan and Saudi Arabian oil ministers were quite disappointing. They failed to reach any agreement during Sunday’s meeting, and volumes of oil production remained unchanged. Moreover, the timing of a possible emergency OPEC meeting, requested by Nigeria and Venezuela, was not confirmed.
Support and resistance
Bollinger Bands indicator on the daily chart is trying to turn horizontally while the price range is narrowing actively down. MACD is turning gradually down and forming a new sell signal. Stochastic is falling and has almost approached the border of the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 33.00, 32.63 (8 February low), 32.00 (near 2 February low), 31.00, 30.25.
Resistance levels: 34.00, 35.00, 36.00 (near 29 January high), 37.00, 38.00, 38.83 (4 January high).
Long positions can be opened after the breakout of the level of 33.90 (with the appropriate indicators signals) with targets at 35.00-35.85 and stop-loss at 33.60. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 32.30 with targets at 31.70, 30.70 and stop-loss at 32.60. Validity – 2-3 days.