Positive fundamental data contributes to the rise of oil price. In the last two days the price of crude oil Brent rose by over 2 USD.
From the lows of January at the level of 27.00 USD, the price rose by over 50% and returned to strong resistance level of 41.45 (ЕМА144 on the daily chart). On the daily and weekly and 4-hour charts the indicators OsMA and Stochastic give signals for long positions. In case of breakdown of the levels 41.45, 42.30 (lows of August, 2015) and after reaching resistance level of 44.50 (ЕМА200 on the daily chart) the price will continue to grow.
As an alternative scenario the price will go back to support level of 38.40 (highs of January and the beginning of decline in price in 2016) and 36.00 (ЕМА50 on the daily chart, ЕМА200 on 4-hour chart). The development of this scenario will be possible if an agreement to freeze oil production will be reached between all the countries. Oversupply of oil in the world will prevent from the rise in oil prices.
Support levels: 41.00, 40.85, 40.00, 39.00, 38.40, 36.00, 35.25 and 35.00.
Resistance levels: 41.45, 42.30, 44.00 and 44.50.
Buy Stop: 41.60. Stop-Loss: 41.10. Take-Profit: 41.90, 42.30, 44.00 and 44.50.
Sell Stop: 40.30. Stop-Loss: 41.50. Take-Profit: 39.10, 38.50, 36.00, 35.25 and 35.00.