Review and evolution
Against a backdrop of fundamental factors, Brent oil price has grown by around 1USD/bbl since the beginning of the month.

Owing to supply outages in a number of regions, the price almost grew to 10-month peaks at about 50.70 (61.8% Fibonacci retracement to a decline from 65.30 to the troughs of the year 2016 at 27.05).

Our opinion
Should the price continue to grow to over 50.70 (61.8% Fibonacci level and November peaks of the year 2015), a new range of 50.00 - 54.00 (August-October peaks 2015) and a new distant target at 55.00 (ЕМА144 on the weekly chart) may form.

The uptrend continues within a channel on the daily chart. OsMA and Stochastic indicators have remained on buyers' side on the weekly chart since mid-February.

An alternative scenario suggests a reversion below a psychologically important level of 50.00. If a downward movement develops, a consecutive breakout of support levels at 47.60 (April peaks), 46.20 (50% Fibonacci retracement and ЕМА50 on the weekly chart), 45.00 (ЕМА200 on the daily chart), and 44.00 (ЕМА1444) will roll Brent oil back to a downtrend.

Consolidation below 41.70 (38.2% Fibonacci retracement) will provoke a further decline to 36.05 (23.6% Fibonacci retracement) and 30.00.

Support levels: 50.00, 48.30, 48.00, 47.60, 46.20, 45.00, 44.00, 42.50, 41.70, 41.00, 40.00, 36.05
Resistance levels: 50.70, 51.00, 54.00, 55.00

Trading tips
Sell Stop 49.80. Stop-Loss 50.20. Take-Profit 49.00, 48.30, 48.00, 47.60, 46.20, 45.00, 44.00, 42.50, 41.70
Buy Stop 50.85. Stop-Loss 49.80. Take-Profit 51.00, 51.50, 52.00, 54.00

indicators suggest long positions
Indicators suggest long positions

Trading in upward channel
Trading in upward channel




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