Published On: Fri, Mar 17th, 2017

Brent Crude Oil: pessimistic forecast for crude oil

InstaForex

Current trend

The oil market is unstable again. On the one hand, uncertainty about the future fate of the OPEC + agreement puts pressure on the oil price, and quotes are going down. On the other hand, crude oil is under pressure of growing production in the US and Canada. In this situation, the main consideration is a pessimistic forecast: in the medium term, the price of crude oil will be under pressure with target levels of 47.65, 45.25. An additional catalyst for the decline may be the growth of the US currency after a long decline. Technical indicators confirm the decline forecast – the volumes of short positions have sharply increased.

Support and resistance

Support levels: 51.15, 49.60, 47.65, 45.25, 43.50, 42.10, 41.70.

The resistance levels are 52.95, 53.70, 54.70, 57.30, 58.55, 59.10, 60.00, 60.70.

Trading tips

In the current situation, it is possible to increase volumes of short positions at the current level and place pending short positions at the levels of 53.70, 57.30 with the targets at 47.65, 45.25. Stop-loss orders may be placed at 58.40.

Forex Analysis

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