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

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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