Sep 16, 2020, 10:31:46 AM
Brent Crude Oil: technical analysis
Current trend
Oil prices are reversing and have been showing growth since the beginning of the week, trading around $41 per barrel.
Asset quotes continue to trade within the global ascending channel, and after reaching the support line of the channel, which is at the 38.2% Fibonacci base correction level, form a corrective growth. The likelihood of a continuation of the global decline is quite high, as indicated by a long-term signal from technical indicators.
However, locally, a more significant corrective growth and reaching the level of an intermediate correction of 50.0% Fibonacci are possible. The EMA fluctuation range on the Alligator indicator began to narrow, and the first upward bar formed on the AO oscillator histogram.
Support and resistance
Resistance levels: 42.00, 45.00.
Support levels: 39.00, 31.20.
Trading tips
After growth or consolidation above 42.00, buy positions with the target at 45.00 will be relevant. Stop loss is 40.00.
After decline or consolidation below the local minimum at 39.00, it is relevant to open sell positions with the target at 31.20. Stop loss is 40.00.
Implementation period: 7 days or more.
Scenario
-
Timeframe
Weekly
-
Recommendation
BUY STOP
-
Entry Point
42.00
-
Take Profit
45.00
-
Stop Loss
40.00
-
Key Levels
31.20, 39.00, 42.00, 45.00
Alternative scenario
-
Timeframe
Weekly
-
Recommendation
SELL STOP
-
Entry Point
39.00
-
Take Profit
31.20
-
Stop Loss
40.00
-
Key Levels
31.20, 39.00, 42.00, 45.00
