Review and dynamics
Since the beginning of the month the price of crude oil Brent has grown by 1.6 USD a barrel. Last week’s rise enabled the price to move to the positive zone.

The price has broken resistance level of 46.20 (Fibonacci 50% to the decline since June 2015 and the level of 65.30 to the lows of 2016 at the level of 27.05) and continues to grow in the ascending channel on the daily chart with the upper limit at the level of 50.70 (Fibonacci 61.8%).

Our opinion
On the daily and 4-hour chart the indicators OsMA and Stochastic give buy signals. If today’s daily candlestick closes above the level of 48.20, the price may go up to 50.00, 50.70 (Fibonacci 61.8% and lows of November 2015).

As an alternative scenario the price can return below resistance level 46.20 (Fibonacci 50% to the decline since June 2015 and the level of 65.30 to the lows of 2016at the level of 27.05, and ЕМА50 on the weekly chart) and continue to decline to support level of 44.25 (ЕМА200 on the daily chart), 42.50 (ЕМА1444). In case of breakout of the level of 41.70 (Fibonacci 38.2%) and consolidation of the price below this level, the pair may continue to decline to 36.05 (Fibonacci 23.6%) and 30.00.

Support levels: 48.20, 46.20, 44.25, 43.30, 42.50, 41.70, 41.00, 40.00 and 36.05.
Resistance levels: 49.00, 49.50, 50.00 and 50.70.

Trading tips
Sell Stop: 47.70. Stop-Loss: 48.70. Take-Profit: 46.20, 45.00, 44.25, 43.30, 42.50, 41.70, 41.00 and 40.00.
Buy Stop: 49.10. Stop-Loss: 48.20. Take-Profit: 49.50, 50.0 and, 50.70.

Upward impetus
Upward impetus

The price is rising in the ascending channel
The price is rising in the ascending channel

Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.

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