Current trend
During the previous trading session the price of crude oil Brent significantly went up. The price of Brent had broken down all resistance levels and by the end of the week, Brent reached the level of $110.00 per barrel.
Today, on 19 May, the price of Brent has exceeded the level of $110.00. In Addition to Ukrainian problems the price of oil was supported by the news from another center of tension- Libya, where the armed group of people has seized the Parliament, demanding to stop its work. Economic news, which can affect the rate of Brent, is not expected today.
Support and resistance
On the four-hour chart technical indicators show that upward movement is likely to continue. Bollinger bands are diverging, confirming “bullish” trend. MACD histogram is in the positive zone and its volumes are increasing.
Resistance levels: 110.35, 111.00 and 112.00.
Support level: 109.60, 108.95, 108.00 and 107.00.
Trading tips
If current trend continues, it will make sense to open long positions after breakdown of the level of 110.35 with the nearest target of 111.00. If the “bulls” manage to overcome the level of 111.00, their next target will be the level of 112.00.
Vadim Smarzh
Analyst of LiteForex Investments Limited
