The price of Brent crude oil continues consolidating in a wide range after some growth in January amid the weakened US Dollar and tensions in the Middle East between Saudi Arabia and Iran.
The price remains pressured by excess in supply and due to the slowing pace of growth of the world economy. At the same time, the falling US Dollar supports oil. Yesterday’s Fed Chair Janet Yellen testimony before the US Congress could not change the tendency, and the probability of an interest rate hike at the March meeting lowered.
Support and resistance
In the medium-term, the price is expected to consolidate in the range between the levels of 37.00 and 27.00. In the long-term, the price will probably remain in the range of 47.00-22.15.
Bollinger Bands on the daily chart is moving horizontally, indicating the price consolidation in the channel of 36.00-27.00.
Support levels: 32.00, 29.95, 28.20, 27.05, 25.55, 22.15.
Resistance levels: 34.50, 35.80, 38.70, 42.10, 43.15, 47.05.
Pending sell orders can be placed at the level of 36.00.
Pending buy orders can be placed at the level of 27.00.