Brent: Fundamental Facts Caused the Rise in Oil Prices
Technical analysis
Fundamental factors of last week caused the rise in oil prices last week. Alternative scenario to proved to be correct. The price broke out resistance level of 41.10 and went further up 42.30 and 44.00 ЕМА200 on the daily chart). The target of 42.30 was reached at the opening of today’s trading day. However, later the price began to fall and at the beginning of European session the price returned to the level of 41.50.
If the price of crude oil Brent does not consolidate above the level of 42.30 the decline in price will resume. The price can go down to 41.10 (ЕМА144 on the daily chart) and further down to 38.85 (ЕМА200 on 4-hour chart), 38.40 (ЕМА50 and bottom line of the ascending channel on the daily chart).
Breakout of support level of 38.40 and 38.00 will trigger decline in price in the downward weekly channel.
On 4-hour chart the indicators OsMA and Stochastic are reversing towards the short positions. As an alternative scenario the price can go above the level of 42.30 and up to 44.00 (ЕМА200 on the daily chart).
Support levels: 41.10, 38.85, 38.40 and 38.00.
Resistance levels: 42.30 and 44.00.
Trading tips
Sell Stop: 41.05. Stop-Loss: 41.40. Take-Profit: 40.00, 38.85 and 38.40.
Buy Stop: 42.45. Stop-Loss: 41.80. Take-Profit: 43.50 and 43.80.
The material has been provided by LiteForex - Finance Services Company - www.liteforex.com
