On the background of macroeconomic events in the UK the price of crude oil (Light Sweet) suspiciously maintains a quiet movement. Last week the price dropped to the support level at 46.00. Then, in the last few days the price recovered to its pre-decline range after the results of the referendum in the UK became known.
At the moment the price is in a sideways trend clamped between the 51.50 and 46.00 levels.
The last few days saw a significant growth. In addition, an absorbtion candlestick pattern was shown at 46.00, giving analysts good reason to believe in the strength of the upward movement. At the same time, considering the nature of the price movement in the last few weeks there is a chance to continue the sideways movement for some time now.
The Next Few Days
With the breakdown of the resistance at 51.60 we should expect a continuation of the growth and a consolidation of the prices above the levels of 53.00 and 53.50. There is also a possibility of extending the flat movement during this and next week. Most likely the price continues to consolidate within the price corridor boundaries because there no final decision about the exit of Britain from the European Union yet.