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The support of the 56 dollars of the barrel type Brent is critical

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The month of January could not be more volatile for the price of 'black gold'. This accumulates a fall close to 20% from the highs at the beginning of the year.

Technical analysis
VALUES IN SIDE TREND

The month of January is being a heart attack for the markets and the oil was not going to be less. We begin the year with strong increases in oil in the face of tension between the United States and Iran and in the last sessions is the fear of a pandemic caused by China's coronavirus which is directly affecting the markets. And the market is discounting that this will affect the economy of China without any doubt. And we already know that when the economy of the Asian giant slows down the rest of the world pays the consequences. And there is no greater thermometer to measure the pulse of the world economy than the price of oil. Investors are discounting that the world economy will slow down under the circumstances that are directly affecting China. That said and as can be seen in the daily chart of the continuous future of the Brent type barrel, crude oil has passed in a few days of attacking the significant resistance of the 72 dollars to test the support of the 56 dollars. It is key, critical I would say, that this support endures if we do not want to attend a strong corrective in oil and therefore in oil companies, among other sectors.

Daily Chart – Brent Continuous Future

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