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Against the backdrop of optimism by investors and participants in the oil market, associated with expectations of a further recovery in the global economy, the price of Brent crude oil has been growing since May last year. At its end, the price reached a 9-month high near $ 52.49 per barrel. At the beginning of the new 2021, the price growth continued.
The price remains positive. On Friday, Brent crude is traded in the zone above important support levels 54.80 (EMA200 on the weekly chart), 47.20 (EMA200 on the daily chart), 53.29 (EMA200 on the 4-hour chart), 55.52 (EMA200 on the 1-hour chart).
If the positive dynamics continues and after the breakdown of the nearest strong resistance level of 57.39 (local highs), the price will continue to grow within the ascending channel on the weekly chart towards the resistance levels of 59.40 (the Fibonacci level of 61.8% of the upward correction to the price drop from the level of 86.60, reached in October 2018, to almost absolute lows at 15.55 in April 2020), 61.50 (the upper limit of the ascending channel on the weekly chart and EMA200 on the monthly chart).
An alternative scenario will be associated with the breakdown of the support levels 55.52, 53.29, and a decline to the support level 47.20. A breakdown of the support level 42.70 (Fibonacci level 38.2%) and the local support level 35.45 will increase the negative dynamics and the likelihood of a return to the downtrend.
Support levels: 55.52, 54.80, 53.29, 51.07, 49.00, 47.20, 46.00, 42.70, 39.30, 35.45, 32.20
Resistance levels: 57.39, 59.40, 61.50
Trading recommendations
Sell Stop 54.90. Stop-Loss 56.40. Take-Profit 54.00, 53.29, 51.07, 49.00, 47.20, 46.00, 42.70, 39.30, 35.45, 32.20
Buy Stop 56.40. Stop-Loss 54.90. Take-Profit 57.39, 59.40, 61.50
