The price of crude oil Brent failed to overcome resistance level of 41.50, which was mentioned in our previous review of 23.03.2016 “the rise can be continued in case of breakdown of the levels of 41.50 and 42.30 (lows of August 2015) and after reaching resistance level of 44.00 (ЕМА200 on the daily chart). As an alternative scenario the price may go back to support levels of 38.40 (highs of January and the beginning of the decline in price in 2016) and 36.00 (low limit of the ascending channel)”.
Recommendations given earlier were (Sell Stop 40.70. Stop-Loss 42.10. Take-Profit 39.10, 38.50, 36.00, 35.25, 35.00) proved to be correct. However, the target has not been reached yet. The main drivers today are the speech by Janet Yellen and weekly oil report from API. If the data will be in favour of the “bears”, the targets of 39.10, 38.50, 36.00 can be reached in a short period of time.
Prior to the meeting of OPEC representatives and other oil producers in Qatar on 17 April, the main fundamental data will be weekly US oil reserves reports and global macro-economic data. The main news of this week is theUS NFPR on Friday.
With the opening of the trading session today, the price of oil continues to decline. On the daily and 4-hour charts the indicators OsMA and Stochastic recommend to open short positions. On the weekly chart the indicators are also reversing towards the short positions.
Support levels: 38.90, 38.40, 36.00, 35.25 and 35.00.
Resistance levels: 41.50, 42.30 and 44.00.
Sell Stop: 39.10. Stop-Loss: 40.10. Take-Profit: 38.40, 36.00, 35.25 and 35.00.
Buy Stop: 40.30. Stop-Loss: 39.80. Take-Profit: 41.50, 42.30 and 44.00.