On the daily chart the price of crude oil Brent has closely approached strong resistance levels of 40.85 (upper line of the ascending channel), 41.50 (ЕМА144) and 42.30 (lows of August 2015). On the daily chart the indicators OsMA and Stochastic give signals for long positions. However, Stochastic is in the overbought zone. The indicators on the four-hour chart are reversing towards short positions.
It is likely that the price will consolidate at these levels but later might go to support level of 38.40 (highs of January and the beginning of decline in 2016) ) 36.00 (ЕМА50 on the daily chart) and 35.25 (ЕМА200, ЕМА144 on 4-hour chart).
As an alternative scenario, the price can continue to rise up to 44.50 (ЕМА200 on the daily chart). However, this scenario and further rise in price will be possible only in case of the favourable fundamental data, such as reduction or termination of monetary policy tightening by the US Fed, agreement between oil producing countries to reduce oil production, stabilization of global economy and financial markets.
Support levels: 40.00, 39.00, 38.40, 36.00, 35.25 and 35.00.
Resistance levels: 40.85, 41.50, 42.30, 44.00 and 44.50.
Sell Stop: 39.90.
Take-Profit: 39.10, 38.50, 36.00, 35.25 and 35.00.
Buy Stop: 40.75.
Take-Profit: 40.90, 41.40, 41.90, 42.20 and 44.00.