Current trend
Yesterday quotes of the crude oil Brent had reached the upper limit of the trading channel at the level of 110.26 and started to decline. At the moment oil is trading at the level of 109.61. Important support level of Murrey 8/8 is at the level of 109.39. If the price breaks down this level today, downward movement can continue up to108.59.
Note that oil prices are supported by instability in Ukraine. Aggravation of the situation in the East of the country and activization of pro-Russian sentiments as well as threat of large-scale military operation pushes up quotes of the black gold. Emergency meeting of UNO, which was held on Monday and aimed at finding ways to stabilize situation in Ukraine was not effective. Russian Federation has opposed any military actions in the East of Ukraine and Western countries keep accusing Russia is escalation of tension. Today a meeting of four parties will be held in Geneva. Russia, Ukraine, USA and EU will discuss ways to settle situation in Ukraine. In the near future quotes of oil will be determined by developments in Ukraine.
Support and resistance
The nearest resistance level is 110.30 – the upper limit of the trading channel.
Support levels are 109.38 – 8/8 Murrey level .
Trading tips
It is recommended to open long positions after breakdown of the level of 110.26 with stop-loss at 110.00 a target of 112.20.
Dmitry Agurbash
Analysts of LiteForex Group of Companies
