Brent Oil tests the channel's support – Analysis - 19-01-2017

Brent oil price traded with clear negativity yesterday to test the main bullish channel's support that appears on chart, as the decline stopped exactly at this support line, located at 53.75, and as we mentioned in our last reports, holding above this level keeps the bullish trend scenario valid and active on the short term basis, waiting to rebound bullishly to resume the bullish wave that its targets begin at 55.50 and extend to 58.37.

Stochastic provides positive signals now to form good positive motive that reinforces the expectations to rise, taking into consideration that breaking 53.75 will open the door to start bearish correction for the bullish wave that started from 27.06 low areas, and the negative targets will begin at 51.00 mainly.

Expected trading range for today is between 53.00 support and 57.00 resistance.

Expected trend for today: Bullish