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Brent Crude Oil: general review 19 July 2017, 14:19


Scenario
Timeframe Intraday
Recommendation BUY
Entry Point 46.64
Take Profit 50.40
Stop Loss 45.35
Key Levels 46.45, 47.18, 47.85, 48.70, 49.00, 49.65, 50.30, 51.18, 51.75
Alternative scenario
Recommendation SELL STOP
Entry Point 48.65
Take Profit 47.80
Stop Loss 49.05
Key Levels 46.45, 47.18, 47.85, 48.70, 49.00, 49.65, 50.30, 51.18, 51.75

Current trend
Yesterday oil had strengthened after the announcement that Libya may reduce the volumes of production. An OPEC+ meeting will be held in Saint-Petersburg on July 22, and the head of Libyan national oil company stated he would be the leader of the delegation. Therefore, Libya shows it is open for dialog with OPEC members about the reduction of production volumes. As of now OPEC agreement failed to have a considerable impact on world oil reserves, as constantly growing drilling activities in the USA and failure of Nigeria and Libya to reduce production volumes wind down all attempts of the cartel.
Yesterday American Petroleum Institute published a report on oil and petrochemicals stocks. It showed the reduction of crude oil reserves in the USA by 1.6 mln barrels a week. Moreover, gasoline reserves dropped by 5.5 mln barrels. All these reductions were expected and are associated with seasonal activities of US internal consumers. At the same time lower oil prices distract LTO producers and the number of drilling rigs increases faster. The facts specified above indicate that oil has good growth potential.
Today market participants have to pay attention to the release of a report by the US Department of Energy on weekly changes in commercial reserves of oil and petrochemicals.
Support and resistance
On D1 chart the instrument consolidated over 49.00 and continued to grow. Bollinger Bands are have reversed upwards, while the price range is widening which is a reason for the preservation of the current trend. MACD histogram is in the neutral area, its volumes have slightly grown, and the signal line is directed upwards forming a weak buy signal. Stochastic has reached the overbought area having formed a strong sell signal.
Support levels: 49.00, 48.70, 47.85, 47.18, 46.45.
Resistance levels: 49.65, 50.30, 51.18, 51.75.

Trading tips
Long positions may be opened at the current price with targets at 50.40 and stop-loss at 45.35. The period of implementation is 1-2 days.
Short positions may be opened from the level of 48.65 with targets at 47.80 and stop-loss at 49.05. The period of implementation is 1-2 days.
Από το Blogger.