Brent: In the Upward Channel. Technical Analysis
Review and dynamics:
On the daily chart the price of crude oil Brent continues to grow in the ascending channel with the upper limit at the level of 48.40. Currently the price has reached new annual highs at the level of 47.30. The price managed to consolidate above resistance level of 46.20, which is crossed by Fibonacci 50% (retracement to the decline since June 2015 and the level of 65.30 to the lows of 2016 at the level of 27.05) and ЕМА50 on the weekly chart.
Despite the rise in the US oil inventories and the increasing production of oil in Iran, the price of oil continues to grow.
On 4-hour, daily and weekly charts the indicators OsMA and Stochastic show further rise in the pair. If the rise continues, the nearest targets will be at the levels of 48.40 (upper limit of the ascending channel on the daily chart) and 50.70 (Fibonacci 61.8% and highs of November 2015).
As an alternative scenario the price may break out support levels of 46.20 and 43.80 (ЕМА200 on the daily chart) and go to 41.70 (Fibonacci 38.2% and ЕМА144 on the daily chart). Consolidation of the price below the level of 41.00 (ЕМА50 and lower line of the channel on the daily chart) can trigger further decline to 36.05 (Fibonacci 23.6%) and 30.00 and to the lows of the year at 27.00 USD per barrel.
Support levels: 46.20, 43.80, 41.70, 41.00, 40.00 and 36.05.
Resistance levels: 48.40, 49.00, 50.00 and 50.70.
Sell Stop: 46.00. Stop-Loss: 46.30. Take-Profit: 43.80, 42.15, 41.70, 41.00, 40.00 and 36.05.
Buy Stop: 47.40. Stop-Loss: 46.80. Take-Profit: 48.00, 48.40, 49.00, 50.00 and 50.70.
Breakout of the level of 46.20
On the daily and weekly charts the indicators OsMA and Stochastic demonstrate further rise in the pair