The oil price is consolidating in the narrowing sideways channel. The lack of fundamental background did not affect the instrument significantly.
USD against the main currencies is moving within the sideways channel. The “black gold” price is supported by the implementation of OPEC+ Oil Production Limitation Agreement. On the other hand, the instrument is under pressure of the growth of US oil production.
Today and tomorrow a number of key releases, such as US Industrial Production, will be published, which can hardly affect the current trend significantly.
Support and resistance
In the middle term, the price can decrease to the lows of the middle of the February level 61.65 and possibly lower, to the levels of 60.00 and 59.00 (the lower border of the long term upward channel). However, the long term upward trend maintains, and the price after deeper correction will go upwards and test new local highs.
On the daily chart, the technical indicators reflect the consolidation in the wide sideways channel, MACD signal line is tending to the zero line, Bollinger Bands are directed horizontally.
Resistance levels: 64.50, 64.75, 66.55, 67.00, 67.60, 69.60, 70.10, 70.70, 71.50.
Support levels: 63.25, 61.65, 61.20, 60.00, 59.50, 59.00, 58.20, 57.10, 56.50.
It is relevant to open pending long positions from the levels of 61.65, 60.00, and 59.00 with the targets at 70.10, 70.70, and 71.50 and stop loss 57.70.
Brent Crude Oil
|Entry Point||61.65, 60.00, 59.00|
|Take Profit||70.10, 70.70, 71.50|
|Support levels||56.50, 57.10, 58.20, 59.00, 59.50, 60.00, 61.20, 63.25, 64.50, 64.75, 66.55, 67.00, 67.60, 69.60, 70.10, 70.70, 71.50|
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