Trading news

Brent: general analysis

Current trend

Crude oil Brent rate is going down amid experts’ expectations of the increase in the US oil inventories. On Thursday the report of the US Energy Information Agency is scheduled for the release. According to predictions oil reserves will increase by 550 thousand barrels up to the highest level since July 2013 of 386 million barrels. It is worth noting that commercial inventories of crude oil in the USA have been growing for the seventh consecutive week.

Support and resistance

Support levels are 105.80, 105.05 and 104.00. Resistance levels: 106.80, 107.40 and 108.00.

Trading tips

It is more likely that in the near future Brent rate will slowly go down to the level of 105.00. It is advisable to open short positions with the target of 105.00 and 104.00 after breakdown of the level of 105.80

Vadim Smarzh

Analyst of LiteForex Group of Companies