Brent Crude Oil: Local Maximum Can Be Renewed
LiteForex Europe | Jan 23, 2017 11:37PM ET
The price is moving near the local maximum of the last six months. The oil and metals price is growing against the significant lowering of the USD, which decreases due to the negative macroeconomical statistics publishing and the tight political situation. The seasonal growing of the demand on oil and the oil production limitation agreement, signed by the OPEC and non-OPEC countries, supports the oil price additionally. The price is also growing due to the publishing of the USA Weekly Crude Oil Stock data, as during the last six months the oil production in the USA has significantly decreased. Donald Trump’s inauguration has caused the outflow of the investors’ demand on the USD. During this week the key indices such as Weekly Crude Oil Stock index, employment data, and the GDP and Durable Goods Order statistics are worth traders’ attention.
The price is moving in the wide upward range. In the short term the price can be corrected to the lower border of the range to the level of 51.15. Then the oil prices will form a long upward wave with a possibility of the local maxima renewing. The target level is 60 USD per barrel in the middle term. Most likely, after reaching the level of 60.00 the price will be trading sideways and consolidating. The technical indicators confirm the expectation, as the MACD keeps the high volumes of the long positions, and the upper border of the Bollinger bands® consolidated on the level of 60.00.
Support levels: 54.70, 52.95, 52.65, 51.15, 49.50, 47.65, 45.25.
Resistance levels: 57.15, 58.55, 59.20, 60.00, 60.50, 61.30, 63.10, 65.00.
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