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

Free $200 Earn with Binary No Deposit Bonus – Ayrex

Free $200 Earn with Binary No Deposit Bonus – Ayrex(0)

Earn $200 Free with Binary Options No Deposit Bonus to all new activated trading account. Ayrex presents its very first Binary Options No Deposit Bonus for new traders. Sign up to get FREE $30 and turn them into a fully withdrawable $200! Link: $200 Earn with No Deposit Bonus Link:  $100 Free Win in Just One

$30 Free No Deposit Welcome Bonus Campaign – Tickmill

$30 Free No Deposit Welcome Bonus Campaign – Tickmill(0)

$30 Free No Deposit Welcome Bonus Campaign to All new traders. $30 Free Welcome Account is available to all new clients who expressed a wish for it during the registration process. Link:  $30 Free Welcome Bonus Offer Available to: All new traders Ending Date: 31 December 2017 Bonus Offer: $30 Free No Deposit Welcome Bonus

Get $2017 No Deposit Hot Bonus Promotion – FreshForex

Get $2017 No Deposit Hot Bonus Promotion – FreshForex(0)

$2017 No Deposit Hot Forex Bonus Offer to all new verified customers. The $2017 Hot No Deposit Forex Bonus offers you a unique opportunity to test trading strategies of FreshForex Link:  $2017 No Deposit Hot Bonus offers Available to: All New Traders. Ending Date: 30 April 2017 Bonus Offer: $2017 No Deposit Exclusive Hot Bonus

100% Real Money Cash Back Bonus Promotion – UFX

100% Real Money Cash Back Bonus Promotion – UFX(0)

100% Real Money CashBack Promotion 2018 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 2017 Bonus offer: 100% Real

$15 Cashback Rebate Bonus per Lot Traded – FBS

$15 Cashback Rebate Bonus per Lot Traded – FBS(0)

$15 Cash back Rebate Forex Bonus per Lot Traded to All new traders. $15 Cashback Rebate Forex Bonus service is unavailable for the clients, who registered their accounts via their partners. Link:  $15 Cashback Rebate per Lot Traded Link:  100% Forex Deposit Bonus Promotion Link:  100% Forex Deposit Bonus Promotion Available to: All new traders

100% Easy Welcome Deposit Bonus Promo – Trade12

100% Easy Welcome Deposit Bonus Promo – Trade12(0)

Free Daily Forex Trading Signals via SMS. EMAIL. SKYPE. WHATSAPP and 100% Easy Welcome Deposit Bonus Promo to your Live Trading Account, Free E-Books Link:  Free Daily Forex Trading Signals Link:  Get 100% Welcome Deposit Bonus Link:  Get Forex Free E-Books Available to: All new clients Ending Date: 31 December 2017 Bonus Offer: Get 100%

$50 Forex Free No Deposit Bonus Promo Action – FortFs

$50 Forex Free No Deposit Bonus Promo Action – FortFs(0)

$50 Forex Free No Deposit Bonus Promo Action to all eligible clients. Every client who passed the verification process in their trader’s room can get the $50 Forex Free No Deposit Bonus Promo Action Link: $50 Forex No Deposit Welcome Bonus Link: Up to 50% Bonus of Every Deposit Link: 15% Support Margin Bonus Promo

Get 25% Trading Credit Bonus up to $5000 – HYCM

Get 25% Trading Credit Bonus up to $5000 – HYCM(0)

25% Forex Trading Credit Bonus Promo available on your Deposits. Experience Some of HYCM New Features, Services and Offers Receive 25% Forex trading credit bonus Link:  25% Trading Bonus on your Deposits Ending Date:  31 December 2017 Available to:   New Clients only Bonus Offer: 25% Forex Trading Bonus Promo Available on your deposits to New Clients

100% Bonus to your first Deposit Up to $300 – AvaTrade

100% Bonus to your first Deposit Up to $300 – AvaTrade(0)

100% Bonus Limited Time Offer to your first deposit Up to $300. Start trading today and in honour of our Irish roots we’ll give you a St. Patricks Day special bonus of up to 100% Link:  100% Special Bonus to Your First Deposit Available to: All new account Ending Date: 31 December 2017 Bonus offer:

Forex Live Contest Total Prize Pool $15000 – FxGrow

Forex Live Contest Total Prize Pool $15000 – FxGrow(0)

Live Trading Forex Contest. The Live Forex trading forex contest that is offered for ECN PLUS and ECN VIP live account holders. Link:  Forex Live Trading Contest Available to: All new trading account Ending Date: 7 April 2017 Terms and Conditions of the Clash for Cash- Live Trading Contest By applying for Cash for Clash

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