Brent Crude Oil: general review
17 May 2018, 11:23
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 79.75 |
| Take Profit | 81.00, 82.00 |
| Stop Loss | 79.20 |
| Key Levels | 75.00, 76.56, 78.12, 79.68, 81.00, 82.00 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 78.05 |
| Take Profit | 76.56 |
| Stop Loss | 78.60 |
| Key Levels | 75.00, 76.56, 78.12, 79.68, 81.00, 82.00 |
Current trend
Quotes of Brent are rising due to the report of US Energy Ministry about the reduction of oil products in the country. For a week, oil reserves fell by 1.404 million barrels, gasoline stocks fell by 0.3790 million barrels. At the same time, the level of oil production in the United States for the week increased by 20 thousand to 10.723 million barrels. Investors reacted positively to the statistics from the Ministry of Energy, as preliminary data from the API, published on Tuesday, showed a significant increase in oil reserves and caused a short-term decline in oil quotations.
On Friday, the Baker Hughes report on active oil platforms in the US is expected. Last week the number of active rigs increased by 10 units to 844 units.
Support and resistance
Technical indicators show the uptrend potential. Bollinger bands are directed upwards. The volumes of MACD grow in the positive zone, forming a buy signal. The Stochastic is in the overbought zone and is directed downwards, which indicates a possible correction.
The growth will be possible above the level of 76.68 (Murray [3/8]). In this case, buyers will try to raise the rate to the area of 81.00 (Murray [4/8]).If attempts to gain a foothold above 76.68 remain unsuccessful, then it is likely that a downward correction will develop to the middle line of the Bollinger bands (78.12). Breakdown of the level of 78.12 will open the path to the support level of 76.56.
Support levels: 78.12, 76.56, 75.00.
Resistance levels: 79.68, 81.00, 82.00.
Trading tips
Long positions can be opened above the level of 79.68 with targets in the area of 81.00-82.00 and stop loss at 79.20.
Short positions will become relevant below the level of 78.12 with a target in the area of 76.56 and stop loss at 78.60.
Implementation period: 2-3 days.
Quotes of Brent are rising due to the report of US Energy Ministry about the reduction of oil products in the country. For a week, oil reserves fell by 1.404 million barrels, gasoline stocks fell by 0.3790 million barrels. At the same time, the level of oil production in the United States for the week increased by 20 thousand to 10.723 million barrels. Investors reacted positively to the statistics from the Ministry of Energy, as preliminary data from the API, published on Tuesday, showed a significant increase in oil reserves and caused a short-term decline in oil quotations.
On Friday, the Baker Hughes report on active oil platforms in the US is expected. Last week the number of active rigs increased by 10 units to 844 units.
Support and resistance
Technical indicators show the uptrend potential. Bollinger bands are directed upwards. The volumes of MACD grow in the positive zone, forming a buy signal. The Stochastic is in the overbought zone and is directed downwards, which indicates a possible correction.
The growth will be possible above the level of 76.68 (Murray [3/8]). In this case, buyers will try to raise the rate to the area of 81.00 (Murray [4/8]).If attempts to gain a foothold above 76.68 remain unsuccessful, then it is likely that a downward correction will develop to the middle line of the Bollinger bands (78.12). Breakdown of the level of 78.12 will open the path to the support level of 76.56.
Support levels: 78.12, 76.56, 75.00.
Resistance levels: 79.68, 81.00, 82.00.
Trading tips
Long positions can be opened above the level of 79.68 with targets in the area of 81.00-82.00 and stop loss at 79.20.
Short positions will become relevant below the level of 78.12 with a target in the area of 76.56 and stop loss at 78.60.
Implementation period: 2-3 days.
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