From the lows of January at the level of 27.05 the price of crude oil Brent has grown by over 50%.
On the four-hour, daily and weekly charts the indicators OsMA and Stochastic give signals for long positions.
However, the price has closely approached the zone of strong resistance at the levels of 41.50 (ЕМА144 on the daily chart) and 42.30 (lows of August 2015). The price might consolidate near the achieved levels and wait for the new drivers either for the rise or for the decline.
In case of decline the price can go back to support level of 38.40 (highs of January and beginning of decline in 2016), 36.00 (ЕМА50 on the daily chart, ЕМА200 on 4-hour chart).
The rise will take place after reaching of resistance level of 44.50 (ЕМА200 on the daily chart).
This scenario is possible if: oil producing countries agree on reduction of oil production, world economy and financial market will show stabilization and slowdown in monetary policy tightening will take place in the USA.
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. Stop-Loss: 40.30. Take-Profit: 39.10, 38.50, 36.00, 35.25 and 35.00.
Buy Stop: 41.60. Stop-Loss: 40.50. Take-Profit: 41.90, 42.30, 44.00 and 44.50.