Review and dynamics
After reaching new highs at the level of 48.40 USD per barrel at the end of April, since the beginning of May as well as with the opening of today’s trading session the price of oil has been decreasing.
The price tries to reach strong support level of 44.00 (ЕМА200 on the daily chart). Nevertheless, the price of crude oil Brent remains in the upward channel on the daily chart with the upper limit above the level of 48.40.
On the daily and 4-hour chart the indicators OsMA and Stochastic recommend give signals to sell.
If downward movement continues and the pair breaks out support level of 44.00 (ЕМА200 on the daily chart), 43.15 (ЕМА200 on 4-hour chart), the price may go down to 41.70 (Fibonacci 38.2%, lower limit of the ascending channel and ЕМА144 on the daily chart). Consolidation of the price below the level of 41.70 may trigger the decline to 36.05 (Fibonacci 23.6%) and 30.00 or down to the annual lows at the level of 27.00 USDF per barrel.
As an alternative scenario the pair can pullback from the levels of 44.00 and 43.15 and after breaking out resistance level of 46.20 (Fibonacci 50% to the decline since June 2015 and the level of 65.30 to the lows of 2016 at the level of 27.05, and ЕМА50 on the weekly chart), the pair may resume growth to 48.40 and to 50.70 (Fibonacci 61.8% and highs of November 2015).
Support levels: 44.00, 43.15, 41.70, 41.00, 40.00 and 36.05.
Resistance levels: 46.20, 48.00, 48.40, 49.00, 50.00 and 50.70.
Sell Stop: 44.50. Stop-Loss: 45.20. Take-Profit: 44.00, 43.80, 42.15, 41.70, 41.00, 40.00 and 36.05.
Buy Stop: 45.50. Stop-Loss: 44.80. Take-Profit: 46.20, 48.00, 48.40, 49.00, 50.00 and 50.70.
In the ascending channel
Near support levels of 44.00 and 43.15