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    Brent: The price is near the annual highs. Technical analysis of 13.05.2016.

    Review and dynamics
    Since the beginning of this week the price of oil has grown. Spot-price of crude oil Brent is near the annual highs at the level of 48.20.

    The price remains in the ascending channel on the daily chart with the upper limit at the level of 50.00. The price was able to consolidate above 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).

    Our opinion
    On the daily and weekly charts the indicators OsMA and Stochastic give buy signals.

    At the same time on 4-hour chart the indicators are reversing towards the short positions.

    After the “dump” of the indicators on 4-hour chart and their reversal toward the long positions, placing buy orders can be considered. Meanwhile it is advisable to refrain from buy positions at the end of the trading week and due to the rise in the USD against major currencies.

    If the price goes down below the level of 46.20 the pair may continue to decline to support level of 44.25 (ЕМА200 on the daily chart).

    In case of downward movement and breakout of support level 42.50 (lower limit of the ascending channel and ЕМА144 on the daily chart) and 41.70 (уровень Фибоначчи 38.2%) the price may return to downtrend with the target of 36.05 (Fibonacci 23.6%), 30.00.

    If the pair breaks out resistance level of 48.20, the rise may continue to 50.00, 50.70 (Fibonacci 61.8% and highs of November 2015).

    Support levels: 46.20, 44.25, 42.50, 41.70, 41.00, 40.00 and 36.05
    Resistance levels: 48.00, 48.20, 49.00, 49.50, 50.0 and, 50.70.

    Trading tips
    Sell Stop: 47.40. Stop-Loss: 48.10. Take-Profit: 47.00, 46.20 and 44.25.
    Buy Stop: 48.30. Stop-Loss: 47.70. Take-Profit: 49.00, 49.50, 50.00 and 50.70.

    On the ascending channel
    On the ascending channel

    “Dump” of the indicators is required
    “Dump” of the indicators is required

     

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