Brent crude oil is in a strong downward trend, hitting new record lows. The price is affected partly by US dollar which has strong pressure on commodity assets.
Moreover, Brent is under pressure by the oversupply of oil which does not seem to be reducing. Previously, the price showed a sluggish positive dynamics amid the reduction of investments in new oil fields and lowering drilling activity in the USA. A decline in Chinese manufacturing activity also adds pressure on oil prices. Thus, preliminary China manufacturing PMI fell to 48.2 points (record low in the last 15 months). China is the world’s second largest consumer of petroleum products, so the current slowdown in the Chinese economy has a negative impact on the oil demand.
Bollinger Bands® on the daily chart are trying to turn sideways. Currently, the indicator gives buy signals again (the price leaving the range); however, the bullish dynamics is not confirmed yet. It is better to wait for a clearer picture. MACD continues its downward dynamics and gives sell signals (the histogram is below its signal line). There are no clear-cut trading recommendations.
Stochastic has been in the oversold zone for a long time, but there are no buy signals yet.
Support levels: 54.16 (24 July current local low), 54.00 and 53.50.
Resistance levels: 55.00 (the nearest mark), 55.73 (8 July local low), 56.50, 57.29 (20 July local high), 58.10, 58.58 and 59.51 (10 July high).