The price of Brent oil continues stable growth in view of the upcoming OPEC+ meeting the main topic of which will be the extension of the agreement on the reduction of production until the end of 2018. Despite the existing skepticism it should be mentioned, that these measures and the current market situation helped oil reach new maximums. Within less then a year the price of Brent oil grew by 50% and reached $64.50 per barrel. The price also easily broke through key resistance levels which may indicate increased demand. The instrument is additionally supported by the reducing rate of US dollar.
During the current trading week special attention should be paid to the minutes of FOMC meeting, changes in US oil stocks according to the US Department of Energy and US services PMI.
Support and resistance
The extension of OPEC+ agreement and possible inclusion of all main oil exporters into it will give the price additional support, and in the long term the upward tendency may continue. One should also pay attention to the gradual growth of world oil demands that along with production regulation measures should balance the market situation. All these factors point out to high possibility of preservation of the upward impulse with targets at 67.00, 69.00, 70.60. Technical indicators confirm the growth outlook: MACD shows preservation of the high volume of long positions, and Bollinger Bands are directed upwards.
Support levels: 61.45, 60.75, 60.10, 58.75, 58.15, 55.75, 52.90, 50.90, 49.50.
Resistance levels: 62.85, 64.15, 64.50, 65.60, 67.00.
In this situation one should open long positions from the current level with targets at 64.50, 67.00 and stop-loss at 59.60.
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