Brent: Oil Price has Reached the Level of 42.00

Brent: Oil Price has Reached the Level of 42.00

18 April 2016, 16:53
Roberto Jacobs
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Brent: Oil Price has Reached the Level of 42.00

Since the opening of European session the price of oil is undergoing correction, rising up to the level of 42.00 USD per barrel. However, the rise above the level of 42.15, which is crossed by moving average line with the period 200 on the hourly chart and Fibonacci 38.2% (correction to the decline since June 2015), is unlikely.

A meeting in Doha has collapsed. Now, the main fact affecting oil prices will be oversupply of oil in the world.

In case of breakout of the level of 41.40 (ЕМА144 на дневном графике) the price will go to 39.30 (ЕМА50 and lower line of the ascending channel on the daily chart) and 36.65 (Fibonacci 23.6%), which means that downtrend will continue.

On 4-hour chart the indicators OsMA and Stochastic give sell signals. On the daily chart the indicators are also reversing towards the short positions.

As an alternative scenario the price can go up after breaking out the level of 4380 (ЕМА200 on the daily chart), 44.85 (recent highs) and continue to rise up to 46.55 (Fibonacci 50% and ЕМА50 on the weekly chart).

Support levels: 41.40, 41.00, 40.00, 39.30 and 36.65.
Resistance levels: 42.15, 43.80, 44.00, 44.85, 45.00, 46.00 and 46.55.

Trading tips

Sell Stop: 41.20. Stop-Loss: 41.50. Take-Profit: 41.00, 39.30, 38.85 and 36.65.
Buy Stop: 42.30. Stop-Loss: 41.90. Take-Profit: 43.80, 44.85, 45.00, 46.00 and 46.55.


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