Brent Crude Oil: oil prices are going down

Current trend

Oil prices resumed their decline during today’s Asian session after a minor correction, caused by the easing of tensions in the Middle East and the proximity of the signing of a trade agreement between the US and China. In turn, API Weekly Crude Oil Stock report put additional pressure on the quotes. Over the week ending January 10, US oil inventories rose by 1.1M barrels after a decrease of 5.945M barrels in the previous reporting period.

Today, investors are awaiting the publication of an official report on Crude Oil Inventories from the EIA. The value is expected to decline by 0.75M barrels which could slightly support the instrument. The previous report reflected the growth of stocks by 1.164M barrels.

Support and resistance

On the D1 chart Bollinger Bands are reversing downwards. The price range expands, making way for new local lows for the instrument. MACD is going down preserving a stable sell signal (located below the signal line). In addition, the indicator is trying to consolidate below the zero mark. Stochastic, having reached its lows, reversed into the horizontal plane, indicating an oversold instrument in the ultra-short term.

To open new correctional positions, it is necessary to wait for clarification of the situation by technical indicators. Some of the short positions should be kept for some time.

Resistance levels: 65.00, 65.49, 66.00, 66.52.

Support levels: 64.35, 64.00, 63.50, 63.00.

Trading tips

To open long positions, one can rely on the rebound from the support level of 64.35, with the subsequent breakout of 65.00. Take profit – 66.00 or 66.52. Stop loss – 64.35 or 64.20.

A breakdown of 64.35 may be a signal for new sales with target at 63.50 or 63.00. Stop loss – 65.00.

Implementation time: 2-3 days.

Scenario

  • Timeframe

    Intraday

  • Recommendation

    BUY STOP

  • Entry Point

    65.05

  • Take Profit

    66.00, 66.52

  • Stop Loss

    64.35, 64.20

  • Key Levels

    63.00, 63.50, 64.00, 64.35, 65.00, 65.49, 66.00, 66.52

Alternative scenario

  • Timeframe

    Intraday

  • Recommendation

    SELL STOP

  • Entry Point

    64.30

  • Take Profit

    63.50, 63.00

  • Stop Loss

    65.00

  • Key Levels

    63.00, 63.50, 64.00, 64.35, 65.00, 65.49, 66.00, 66.52

Tifia trading account

Open

Brent analysis for today.