Brent Crude Oil: General Analysis
LiteForex Europe | Mar 30, 2017 06:55AM ET
Yesterday, Brent crude oil strengthened due to the publication of the U.S. Energy Ministry's report on a weekly change in oil and petroleum products. The reserves of crude oil increased by 867K barrels, which is much lower than the forecast of 1,183K barrels. In addition, the disruptions of deliveries from Libya related to the closure of a major oil pipeline, as well as growing optimism about the reduction in production volumes by the largest producer countries continue to support UKBrent.
In the medium term, Russia's influence on "black gold" becomes a key. If the Russian side reduces production to the previously announced 300K barrels, the market will receive a strong impetus for the growth of the trading instrument.
On the daily chart, the instrument broke through a strong resistance level of 52.30. The indicator "Bollinger Bands" is directed downwards, while the price range has decreased, indicating an early change of the current trend. The MACD histogram is in the negative zone, keeping the signal to sell. Stochastic entered the oversold area.
Support levels: 52.25, 51.35, 49.96, 49.06.
Resistance levels: 53.49, 54.01, 54.88, 55.51, 56.56.
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