On Wednesday, the price of Brent crude oil posted the biggest fall in two weeks, having lost about $1.5. The main factor that pushed the price down was a notable increase in US oil production and reserves. Thus, reserves grew by 2.847 billion barrels, while production came in at 9.16 billion barrels. Today, the price continues being under pressure from US news releases.
Support and resistance
On the 4-hour chart, is directed down, indicating that the price is likely to continue declining. histogram is in the positive zone, but its volumes are falling, thus, a sell signal may be formed in the short term.
Support levels: 48.10, 47.00, 46.35.
Resistance levels: 49.00, 50.00, 51.00.
Short positions can be opened at the current levels with the target at 48.00.
Long positions would become valid after the consolidation above the level of 50.00 with targets at 51.00, 52.00.
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