Brent Crude Oil: Murrey Analysis 21 January 2019, 12:00

Brent Crude Oil: Murrey Analysis

21 January 2019, 12:00

Scenario
Timeframe	Weekly
Recommendation	BUY STOP
Entry Point	62.55
Take Profit	65.62
Stop Loss	61.70
Key Levels	56.25, 59.37, 62.50, 65.62

Alternative scenario
Recommendation	SELL STOP
Entry Point	61.00
Take Profit	59.37
Stop Loss	61.80
Key Levels	56.25, 59.37, 62.50, 65.62

On the daily chart, the pair is testing the central level of the Murrey trading range around 62.50 ([4/8]). If the price manages to consolidate above it, the growth will continue to the level of 65.62 [5/8].
Technical indicators confirm the possibility of further growth. Bollinger bands are reversing upwards. MACD histogram increases in the positive zone. Stochastic is directed upwards but it approaches the overbought zone, therefore the potential for an increase in oil prices seems to be limited. If the price cannot break the level of 62.50, a decline to the lower border of the central channel of Murrey, in the area of ​​59.37 ([3/8]), may begin.
Support and resistance
Resistance levels: 62.50, 65.62.
Support levels: 59.37, 56.25.

Trading tips
Long positions can be opened above the level of 62.50 with the target at 65.62 and stop loss 61.70.
Short positions can be opened from the level of 61.00 with the target at 59.37 and stop loss 61.80.
Implementation period: 4–5 days.