Brent Crude Oil: trend change is possible
23 January 2019, 11:01| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL |
| Entry Point | 61.45 |
| Take Profit | 57.70, 56.60 |
| Stop Loss | 63.90 |
| Key Levels | 50.00, 50.50, 53.20, 54.15, 56.30, 56.60, 57.70, 58.50, 60.00, 63.50, 64.45, 66.40, 68.30, 71.00, 74.30 |
Current trend
Oil price continues to grow, having gained more than $8 per barrel since the beginning of the year. In the second half of January, the rate is still strengthening but the momentum is gradually fading away, and the upward movement becomes more gentle. At the end of the last trading week, the instrument almost reached the key resistance level and the local maximum of the beginning of December 2018 at 63.50. The main catalyst for the growth of quotations of "black gold" is the decline in the US currency and the increase in demand for energy.
At the end of the current trading week, special attention should be paid to data on changes in oil reserves from the US Department of Energy and releases on the labor market.
Support and resistance
In the medium term, a corrective decline from 63.50 to 57.70, 56.60 is expected. In this case, the price will continue to fall to the lows of the end of 2018 at 50.50, 50.00. The instrument stays within the medium upward range, trading at its lower border.
Technical indicators give a signal of decline, the volumes of long MACD positions are decreasing, and Bollinger bands are reversing downwards.
Resistance levels: 63.50, 64.45, 66.40, 68.30, 71.00, 74.30.
Support levels: 60.00, 58.50, 57.70, 56.60, 56.30, 54.15, 53.20, 50.50, 50.00.
Trading tips
It is relevant to increase the volumes of short positions from the current level with the targets at 57.70, 56.60 and stop loss 63.90.
Oil price continues to grow, having gained more than $8 per barrel since the beginning of the year. In the second half of January, the rate is still strengthening but the momentum is gradually fading away, and the upward movement becomes more gentle. At the end of the last trading week, the instrument almost reached the key resistance level and the local maximum of the beginning of December 2018 at 63.50. The main catalyst for the growth of quotations of "black gold" is the decline in the US currency and the increase in demand for energy.
At the end of the current trading week, special attention should be paid to data on changes in oil reserves from the US Department of Energy and releases on the labor market.
Support and resistance
In the medium term, a corrective decline from 63.50 to 57.70, 56.60 is expected. In this case, the price will continue to fall to the lows of the end of 2018 at 50.50, 50.00. The instrument stays within the medium upward range, trading at its lower border.
Technical indicators give a signal of decline, the volumes of long MACD positions are decreasing, and Bollinger bands are reversing downwards.
Resistance levels: 63.50, 64.45, 66.40, 68.30, 71.00, 74.30.
Support levels: 60.00, 58.50, 57.70, 56.60, 56.30, 54.15, 53.20, 50.50, 50.00.
Trading tips
It is relevant to increase the volumes of short positions from the current level with the targets at 57.70, 56.60 and stop loss 63.90.
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