Brent: oil prices fellCurrent trend
The price of Brent crude oil fell at the beginning of the week amid growing concerns that the OPEC countries are going to carry out their agreement to cut the production.
According to the experts, in the first days of January the Iraqi exports going through the port of Basra were the highest in the last 4 years. In addition, oil reserves in Iran’s floating storages significantly fell. In September 2016, their levels halved that indicates an increase in the country’s exports activities.
Oil prices were also pressured by data on the number of oilrigs in the US. For the week ending on 30 December, their number rose by 4 to 529 rigs, reaching the highest level since December 2015. The number of rigs in the US has been growing for the 10th consecutive week. Support and resistance
Bollinger Bands on the daily chart turned sideways while the price range remains unchanged. MACD is falling and giving a quite strong sell signal. Stochastic is falling as well and approaching the border of the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 55.07 (local low), 54.37, 53.91 (22 December low), 53.50, 52.68 (8 December low), 51.85.
Resistance levels: 55.77 (20 December high), 56.50, 57.10 (12 December high), 57.52 (6 January high), 58.10, 58.68 (15 July 2015 high), 59.51.Trading tips
Long positions can be opened after the breakout of the level of 55.77 with targets at 57.10, 57.52 and stop-loss at 54.00. Validity – 2-3 days.
Short positions can be opened after the price consolidation below the level of 55.00 with targets at 53.50, 52.68 and stop-loss at 55.80. Validity – 2-3 days.