Yesterday, oil fell under pressure against the background of the news received about the likely increase in US production. However, sentiment on the oil remains positive, as the representatives of OPEC compliance with the terms of the production reduction agreement.
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Oil situation on 24.01.2017
At the auction on Monday trades developed by the bearish scenario. Once during the Asian session, the price remained in the flat, during the early European session trading, it dropped. Benchmark departed from the level 55.50, and headed to the level of 54.50 dollars per barrel. Brent crude has tested the 50 EMA and the 200 EMA in the downward direction on the 4-hour chart, during the European session. EMA-50, 100-EMA-EMA 200 and remain neutral during a day. Resistance is at around 55.50, and at 54.50 dollars per barrel support.
The MACD indicator is located on the ground level. If the histogram will go into negative territory, it will point to the strengthening position of sellers. If the MACD enters into positive territory, control of the market will have buyers.
oil price forecast for 24/01/2017
If the pressure on prices will continue to be a chance to break the level of 54.50 dollars per barrel. In case of breaking this mark, will open the way to 53.50.
* Analytical review of the broker of Fort the Financial Services , analyst Alexander Kofman
