Brent Crude Oil: Murrey analysis 25 January 2019, 14:38

Brent Crude Oil: Murrey analysis

25 January 2019, 14:38

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	61.17
Take Profit	59.73, 56.25
Stop Loss	62.00
Key Levels	53.12, 56.25, 59.37, 62.50, 65.62, 68.75

Alternative scenario
Recommendation	BUY STOP
Entry Point	62.55
Take Profit	65.62, 68.75
Stop Loss	61.30
Key Levels	53.12, 56.25, 59.37, 62.50, 65.62, 68.75

On D1 chart, the instrument is within the range of 62.50-59.37 ([4/8] - [3/8]) for the third consecutive week. On Monday, a strong level of 62.50 was tested in the center of the Murray trading range but quotes failed to enter the positive zone. Unsuccessful attempts to break this level continue since December. Now the price has stabilized at the level of 61.00 and may fall below, to 59.37 ([3/8], the midline of Bollinger Bands), which is seen as the key level for the “bears” in the medium term. In case of its breakdown, the targets for decline will be 56.25 ([3/8]) and 53.12 ([2/8]). The level of 62.50 ([4/8]) is seen as the key one for the "bulls". If the price consolidates above 65.62 ([5/8]), the growth will continue to 65.62 ([5/8], the upper line of Bollinger Bands) and 68.75 ([6/8]). However, this option is currently less likely.
Support and resistance
Support levels: 59.37, 56.25, 53.12.
Resistance levels: 62.50, 65.62, 68.75.

Trading tips
Short positions may be opened from the current level with targets at 59.73, 56.25 and stop loss at 62.00.
Long positions may be opened if the instrument consolidates above 62.50 with targets at 65.62, 68.75 and stop loss at 61.30.
Implementation period: 4-5 days.