Published On: Wed, Mar 15th, 2017

Brent Crude Oil: technical analysis


UKBrent, D1

On the daily chart, the instrument is trading just above the lower line of Bollinger Bands having formed five consecutive closes below it. The price remains just above the SMA200 but below the EMA14, EMA65 and EMA130 that start turning down. The RSI is testing the border of the oversold zone from below. The Composite is growing having failed its strong support.

UKBrent, H4

On the 4-hour chart, the instrument is trading on the middle MA of Bollinger Bands. The price remains below the EMA65, EMA130 and SMA200 that are directed down. The RSI is trying to turn down having broken out its longer MA. The Composite is showing similar dynamics. Both indicators represent a Bullish behavior.

Key levels

Support levels: 49.68 (May 2016 highs), 47.27 (April 2016 highs), 46.55 (September 2016 lows).

Resistance levels: 52.69 (June 2016 highs), 53.61 (October 2016 highs), 54.95 (local highs).

Trading tips

The price is testing its long-term ascending trendline that coincides with the SMA200. Its breakdown would lead to a fall continuation.

Short positions can be opened from the level of 49.68 with targets at 47.27, 46.55 and stop-loss at 50.91. Validity – 3-5 days.

Long positions can be opened from the level of 53.61 with the target at 54.95 and stop-loss at 53.00. Validity – 3-5 days.

Forex Analysis

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