Subscribe to RSS

Forex Technical Analysis #C-BRENT : 25 January 2016

Cold spell supports oil

On Friday the global oil prices edged up more than 6% due to the brisk demand on residual oil amid cold spell in Europe and US. The daily prices growth was after their record 25-year fall in January so market participants see it as correction. Will oil prices continue rising? Let’s study the European oil grade – Brent.

Since the start of the year the Brent oil prices slumped 24% hitting a fresh record low since 2003. The main reason was the supply glut in global markets which formed in 2014 due to the US shale plays development. These days the Western countries have lifted the international economic sanctions against Iran. The IEA expects the oil production to increase by 0.6bn barrels a day and the global oil demand to surpass the supply by 1.5 mln barrels a day in the first half of 2016. Meanwhile, the Iran’s officials stated they were planning to increase the oil production by scarce 0.5mln barrels a day. In theory, they may postpone it till they regain access to the state funds frozen in foreign banks. All these factors postpone the flood of Iran’s oil to the global markets supporting the oil prices. IEA forecasts the global oil demand will increase 1.2mln barrels a day in 2016. The key factor of price growth is the cold spell in Europe and US. The US National Weather Service estimates the snowfall total may surpass 61cm in Washington while in the West Coast region it may edge up to 75cm. Low oil prices made the Canada’s shade oil companies lose $15 per each barrel sold and the production is maintained only by money loans. The same story is in Venezuela and Columbia. According to the Wood Mackenzie consultancy, the oilfield development projects to the gross value of $380bn have been frozen since 2014. So, the further massive oil production build-up is unlikely. Nevertheless, the demand may contract in case of the global economic slowdown. Such concerns may put the brakes on the oil prices rebound.

Brent

On the daily chart Brent: D1 has verged the support of the long-term descending channel and the 13-year low. It failed to break down through it and began correcting upwards. The Parabolic and MACD indicators give buy signals. RSI has left the oversold zone and formed the positive divergence but has not yet reached the level of 50. The Bollinger bands have widened which may mean higher volatility. The bullish momentum may further develop in case Brent surpasses the last upper Parabolic signal at 32.5. This level may serve the point of entry. The initial risk-limit may be placed below the 13-year low and the last fractal low at 27.4. Having opened the pending order we shall move the stop to the next fractal low following the Parabolic and Bollinger signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. The most risk-averse traders may switch to the 4-hour chart after the trade and place there a stop-loss moving it in the direction of the trade. If the price meets the stop-loss level at 27.4 without reaching the order at 32.5, we recommend cancelling the position: the market sustains internal changes which were not taken into account.

Position Buy
Buy stop above 32.5
Stop loss below 27.4

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

Up to 50% Welcome Bonus on Each Deposit – Fort Financial

Up to 50% Welcome Bonus on Each Deposit – Fort Financial(0)

Up to 50% Welcome Bonus of Every Deposit to All New and Existing Traders. You Deposited $1000 on your account, chose a 50% bonus and got 500 extra dollars to the initial deposit amount. Link: $888 Extra Bonus Amount Promotions Link:  $5 Forex No Deposit Welcome Bonus Link:  Up to 50% Bonus of Every Deposit

300 USD No Deposit Forex Welcome Bonus – CARRAX

300 USD No Deposit Forex Welcome Bonus – CARRAX(0)

300 USD No Deposit Forex Welcome Bonus for 30 calendar days for real trade in the forex market. Only Carrax verified users may participate in the 300 USD No Deposit Forex Welcome Bonus Promotion. Link:  300 USD Forex No Deposit Bonus Withdrawal: Only profits can be withdrawn after 30 days of having the account active.

FX Zone Currency Capital Forex Trading Contest – FXTM

FX Zone Currency Capital Forex Trading Contest – FXTM(0)

FX Zone Currency Capital Trading Contest final Bid Central. Sharpen your forex trading skills completely RISK-FREE as you enter ForexTime Broker simulated forex world of 2017 the FX Zone Currency Capital Contest. Link:  FX Zone Currency Capital Contest Link:  $25 Per Referral Earn up to $10000 Link:  Receive $30 Tradeable Credit Bonus Link:  Loyalty Cashback

$123 Free No Deposit Welcome Bonus – FBS Broker

$123 Free No Deposit Welcome Bonus – FBS Broker(0)

$123 Free No Deposit Forex Bonus of FBS Broker all new members to get a Free bonus of $123 without initial deposits and start a risk-free forex liveForex Trading. Link:  $123 Free Forex Bonus Promotion Link:  100% Deposit Bonus Promotion Link:  $88.8 Lucky No Deposit Bonus (for Malaysian traders) Available to: All new traders Ending

$50 Free No Deposit Bitcoin Bonus Special Promo – UFX

$50 Free No Deposit Bitcoin Bonus Special Promo – UFX(0)

$50 Forex No Deposit Bitcoin Bonus Special Promotion to all new trading account holder. Start Forex Trading Bitcoin with UFX and  Get a $50 No Deposit Bonus Link:  $50 Forex No Deposit Special Bonus Link:  $50 Free No Deposit Bitcoin Bonus Link:  100% Real Money CashBack Promo Link:  $5000 BitCoin Rewards Bonus Promo Available to:

Forex Special Promo FREE Forex Trading Signals – CMSTrader

Forex Special Promo FREE Forex Trading Signals – CMSTrader(0)

Forex Special Promotion for our new clients. Open account and get our FREE Forex Trading Signals with high success claim them Now 91% Success! Link:  Top Social Copy Trading Platforms Link:  FREE trading signals Special Promotion Ending Date:  31 December 2018 Available to:   New Clients only Bonus Offer: Get FREE forex trading signals Special promotion

50% Welcome Bonus Limited Time Offer – Trade Time

50% Welcome Bonus Limited Time Offer – Trade Time(0)

50% Welcome Forex Bonus Limited Time Offer to TradeTime All New Clients. Join TradeTime and receive your 50% Welcome Forex Bonus Now! Link:  50% Welcome Bonus Limited Time Offer Available to: All New Clients Bonus Ending Date: 31 December 2018 Bonus offer: 50% Welcome Bonus Limited Time Offer to TradeTime All New Clients. Watch how

100% CashBack Real Money Bonus Promotion – UFX

100% CashBack Real Money Bonus Promotion – UFX(0)

100% Real Money CashBack Promotion to all new and existing clients. Join and gain exclusive access to the ONLY online trading 100% Cashback rewards bonus program Link:  100% Real Money CashBack Promotion Link:  $50 Forex No Deposit Bonus Promotion Available to: All new trading account Ending Date: 31 December 2018 Bonus offer: 100% Real Money

30 USD Forex Free Welcome Bonus Promotion – Tickmill

30 USD Forex Free Welcome Bonus Promotion – Tickmill(0)

30 USD Forex Free Welcome Bonus Promotion to All new traders. $30 Free Forex Welcome Account is available to all new clients who expressed a wish for it during the registration process. Link:  Weekly Demo Race Trading Contest Link:  $30 Free Welcome Bonus Campaign Link:  Forex Monthly Live Trading Contest Available to: All new traders

Forex Tradable Deposit Free Bonus 101% – FreshForex

Forex Tradable Deposit Free Bonus 101% – FreshForex(0)

Forex Tradable Deposit Free Bonus 101% gives a real chance to start Forex trading with low investment and double return! Forex Tradable Deposit Free Bonus from FreshForex helps you to boost your trading volume and thus, the profit you earn. Link:  Tradable Deposit Bonus 101% Link:  $200 No Deposit Welcome Bonus Available to: All New

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories