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Brent: the price is at the level of 50.00. Technical analysis for 05.07.2016

Review and dynamics
After the rise in price of crude oil Brent above 51.00 at the end of last week, since the beginning of this week the price has been declining. Today oil prices continue to fall.

The price has broken down strong support levels of 50.70 (Fibonacci 61.8% versus the decline from the level 65.30 to the lows of 2016 гat the level of 27.05) and 50.00 (psychologically important level). Now support level is 49.40 (ЕМА144 on 4-hour chart).

Our opinion
If downtrend continues this week, the price can fall to support level of 49.00 (ЕМА200 on 4-hour chart) and 48.30 (ЕМА50 on the daily chart).

On 4-hour chart the indicators OsMA and Stochastic give signals for short positions. On the daily and weekly chart the indicators are reversing towards the sell positions.

The price is in the range of 47.00 and 50.70 with the midline near support levels of 49.00 and 48.30 (ЕМА50 on the daily chart).

Next support level is 47.50 (lower line of the ascending channel on the daily chart), 47.00 (ЕМА50 on the weekly chart) and 46.20 (Fibonacci 50.0% and ЕМА200 on the daily chart).

Meanwhile the price is above support level of 48.30. From the technical point of view it is likely that the price will continue to rise on the daily chart to resistance level and further targets of 54.00 and 55.00, which are very close to the line ЕМА144 on the weekly chart and the upper line of the ascending channel on the daily chart.

Consolidation of the price below the level of 45.40 (ЕМА144 on the daily chart) can change the trend and the price may go to support levels of 41.70 (Fibonacci 38.2%), 36.05 (Fibonacci 23.6%), 32.30 and 30.00.

The situation is not clear, however under pressure from fundamental factors, “bearish” positions seem stronger.

Support levels: 49.40, 49.00, 48.30, 48.00, 47.50, 47.00, 46.20, 45.70, 45.00, 44.00, 42.50 and 41.70.

Resistance levels: 50.00, 50.70, 51.00, 52.00 and 52.80.

Trading tips
Sell Stop: 49.30. Stop-Loss: 49.90. Take-Profit: 49.00, 48.30, 48.00, 47.50, 47.00, 46.20, 45.70 and 45.00.
Buy Stop: 50.10. Stop Loss: 49.60. Take-Profit: 50.70, 51.00, 52.00, 52.80, 53.00 and 54.00.

In the ascending channel
In the ascending channel

Support levels: 49.40 and 49.00
Support levels: 49.40 and 49.00

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