Published On: Wed, Feb 22nd, 2017

Brent Crude Oil: general review

InstaForex

Current trend

Yesterday, the price of Brent crude oil hit the 7-week highs. The optimistic forecast about fulfilling the OPEC’s plan on cutting oil extraction provoked the growth of UKBrent price to the level of 57.32. Markets received the growth impulse, as Mohammed Barkindo, Secretary General of OPEC, stated that all countries that entered the agreement were determined to reach the higher levels of implementation of their agreements. Barkindo also mentioned that there is still a lot of oil excesses in the market, but in 2017, the global oil production is expected to lower significantly.

The key event that can influence the dynamics of the trading instrument is a publication of meeting minutes of American Petroleum Institute. Besides, experts state Russia’s key role in price stabilization process. If Russia announces contraction in extracting crude oil, commodity’s price will increase rapidly.

Support and resistance

On the daily chart the instrument is trading within the upper band of Bollinger Bands. The indicator is horizontal, and the price range remains unchanged, indicating that the current trend persists. MACD histogram is near zero line. Stochastic is approaching the overbought zone.

Technical indicators don’t give a clear signal.

Support levels: 56.16, 55.91, 55.28, 54.85.

Resistance levels: 56.72, 57.09, 57.65, 58.07.

Trading tips

Long positions can be opened at the level of 56.80 with take-profits at 57.32, 57.60 and a Stop Loss order at 56.30. Implementation time: 1-2 days.

Short positions would become relevant at the level of 56.15 with take-profits at 55.60, 55.25 and stop-loss at 56.60. Implementation time: 1-2 days.

Аналитика Форекс

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