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    Brent: the price to tend to a new range. Technical analysis as of 07.06.2016.

    Review and evolution
    Against a backdrop of fundamental factors, Brent oil price has grown by around 1USD/bbl since the beginning of the month.

    Owing to supply outages in a number of regions, the price almost grew to 10-month peaks at about 50.70 (61.8% Fibonacci retracement to a decline from 65.30 to the troughs of the year 2016 at 27.05).

    Our opinion
    Should the price continue to grow to over 50.70 (61.8% Fibonacci level and November peaks of the year 2015), a new range of 50.00 - 54.00 (August-October peaks 2015) and a new distant target at 55.00 (ЕМА144 on the weekly chart) may form.

    The uptrend continues within a channel on the daily chart. OsMA and Stochastic indicators have remained on buyers' side on the weekly chart since mid-February.

    An alternative scenario suggests a reversion below a psychologically important level of 50.00. If a downward movement develops, a consecutive breakout of support levels at 47.60 (April peaks), 46.20 (50% Fibonacci retracement and ЕМА50 on the weekly chart), 45.00 (ЕМА200 on the daily chart), and 44.00 (ЕМА1444) will roll Brent oil back to a downtrend.

    Consolidation below 41.70 (38.2% Fibonacci retracement) will provoke a further decline to 36.05 (23.6% Fibonacci retracement) and 30.00.

    Support levels: 50.00, 48.30, 48.00, 47.60, 46.20, 45.00, 44.00, 42.50, 41.70, 41.00, 40.00, 36.05
    Resistance levels: 50.70, 51.00, 54.00, 55.00

    Trading tips
    Sell Stop 49.80. Stop-Loss 50.20. Take-Profit 49.00, 48.30, 48.00, 47.60, 46.20, 45.00, 44.00, 42.50, 41.70
    Buy Stop 50.85. Stop-Loss 49.80. Take-Profit 51.00, 51.50, 52.00, 54.00

    indicators suggest long positions
    Indicators suggest long positions

    Trading in upward channel
    Trading in upward channel


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