Yesterday, the price of Brent crude oil fell when the American Petroleum Institute published its weekly estimate of US crude oil inventories. Last week, crude oil stocks increased by 2.9 million barrels while analysts expected a decline by 2.5 billion barrels.
Support and resistance
Bollinger Bands indicator on the 4-hour chart is directed down so the price is likely to continue declining. Though MACD histogram is in the positive zone, its volumes are falling.
Support levels: 36.80, 36.35, 35.90. Resistance levels: 38.00, 39.00, 40.00.
Trading tips
Short positions can be opened at the current level with targets at 36.35, 35.90. Long positions can be opened if the price consolidates above the level of 38.00 with targets at 39.00, 40.00.