Brent Crude Oil: general review(Trading tips)

Current trend

American Petroleum Institute and US Department of Energy have reported about increasing reserves of petrochemicals for two days. In view of this data the quotes of oil are declining. OPEC production cutting agreement concluded last year cannot influence the price of the asset that is under pressure of speculative and political factors. Yesterday after testing a strong psychological level of $50.00 per barrel, oil failed to break through it and grew again. However, if OPEC (the next meeting of which is scheduled in Kuwait for March 25-26) fails to take drastic action, nothing will prevent oil from further dropping.

Although the negative correlation between oil and US dollar has not been working recently, today attention should be paid to the statement of FOMC head J. Yellen at 14:30 (GMT+2), and tomorrow at 20:00 (GMT+2) — to the report on active oil platforms in the USA by Baker Hughes. If further growth of the number of platforms is announced, the oil is almost certant to drop below USD 50.00 per barrel.

Support and resistance

Resistance levels: 55.80, 55.00, 54.30, 52.75.

Support levels: 50.90, 50.00, 49.30, 48.40.

Trading tips

Long positions may be opened at the market price with target at 52.75 and stop-loss at 50.60.

Alternative scenario would be sell positions at the level of 50.00 with target at 49.30 and stop-loss at 50.40.

Scenario

Timeframe Intraday
Recommendation BUY
Entry Point 51.09
Take Profit 52.75
Stop Loss 50.60
Key Levels 48.40, 49.30, 50.00, 50.90, 52.75, 54.30, 55.00, 55.80

Alternative scenario

Recommendation SELL STOP
Entry Point 50.00
Take Profit 49.30
Stop Loss 50.40
Key Levels 48.40, 49.30, 50.00, 50.90, 52.75, 54.30, 55.00, 55.80
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