Subscribe to RSS

Forex Technical Analysis #C-BRENT : 26 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 $100 Non-Deposit Bonus to Everyone – PrivateFX

Free $100 Non-Deposit Bonus to Everyone – PrivateFX(0)

Free $100 Non-Deposit Bonus to Everyone for PrivateFX New Customers. Each new customer who open account from May 16 will get into his/her account a Free bonus of 100 USD to invest in PrivateFX Company’s tools Link:  $100 Non-Deposit Bonus to Everyone Available to: All new trading account Bonus Offer: Free $100 Non-Deposit Bonus to

300% Tradable Bonus plus Risk Free Trade – MarketsYes

300% Tradable Bonus plus Risk Free Trade – MarketsYes(0)

300% Forex Tradable Bonus Promotion and Risk Free Trade plus Forex Free Signals all New and existing clients. MarketsYes is offering all prospective clients deposit for up to 3000 USD/EUR/GBP a 300% Tradable Deposit Bonus. Link:  300% Tradable Bonus Promotion Link:  Risk Free Trade plus Forex Free Signals Available to: All New and existing clients

25% Forex Credit Bonus on their First Deposit – HYCM

25% Forex Credit Bonus on their First Deposit – HYCM(0)

25% Credit Forex 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 only.

$25 Deposit and earn $5000 Cashback Bonus – UFX

$25 Deposit and earn $5000 Cashback Bonus – UFX(0)

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

Weekly Demo Trading Contest – Adamant Finance

Weekly Demo Trading Contest – Adamant Finance(0)

Weekly Forex Demo Trading Contest 2017 total amount of the prize fund is 1300USD. We announce traders’ contest for all who want to take part and to gain prizes. Link:  $50 No Deposit Welcome Bonus Link:  Weekly Forex Trading Contest Available to: All new and existing clients. Ending Date: 31 December 2017 Contest offer: Forex

$30 Fx Bonus to Your Account Completely Free – Fidelis

$30 Fx Bonus to Your Account Completely Free – Fidelis(0)

Get $30 No Deposit Fx Bonus Promotion in your Fidelis CM account and start your forex trading career. Open your new trading account with Fidelis CM in a few simple steps and get your $30 Fx Free No Deposit Bonus credited in your account. Link:  $30 Forex No Deposit Bonus Completely Free Available to: All

Free Forex Trading Signals Promotion – Forex Time

Free Forex Trading Signals Promotion – Forex Time(0)

FXTM Free Forex Trading Signals Spotting Trading Opportunities Just Got Easier and Up to 200% Withdrawable Cashback Rebates and get $4 Cashback back for every lot you trade. Link:  Free Forex Trading Signals Link:  Loyalty Cashback Promotions Link:  200% Withdraw able Cashback Rebates Ending Date: 31 December 2018 Available to: All Customers Bonus Offer: ForexTime

Free MT4 VPS plus 100% Welcome Bonus – FXGiants

Free MT4 VPS plus 100% Welcome Bonus – FXGiants(0)

FXGiants is offering its valued Trader  the exclusive 100% Maximiser Forex Welcome Bonus. Be rewarded with this unique offer and maximise your trading potential with NO limits. Link:  $35 No Deposit Bonus Promotion Link:  100% Maximiser Deposit Bonus. Link:  20% Bonus Advantage up to $2000 Available to: All new trading account Bonus offer: $35 No

$1000 Welcome Deposit Bonus Promotions – eToro

$1000 Welcome Deposit Bonus Promotions – eToro(0)

Get Forex Welcome Deposit Bonus Promotions code by eToro Forex Broker. Trade over 900 global instruments with most advance and friendly trading platform. Link:  Top Copy Trading Social Platforms Link: Up to $1000 Welcome Deposit Bonus Available to: All new account Ending Date: 31 December 2018 Bonus Offer: Get Forex Welcome Deposit Bonus Promotions code

$50 Forex No Deposit Welcome Free Bonus – ForexBull

$50 Forex No Deposit Welcome Free Bonus – ForexBull(0)

$50 Forex No Deposit Welcome Free Bonus is available to all new clients of ForexBull as well as for those who still haven’t got any previous No Deposit Welcome Free Bonuses from the company. Link:  $50 Forex No Deposit Welcome Bonus Available to: All new trading account Ending Date: 31 December 2017 Bonus offer: $50

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