Brent (a 4-hour chart)
Oil prices traded lower on Monday as OPEC members failed to agree on measures to freeze its output.
Brent oil futures held on their recent lows during the Asian session on Monday. Prices gapped lower at the open and filled the gap Post-European opening. Brent futures spent the first part of the day around the level 49.50 dollars per barrel and faced further downside pressure ahead of the NY opening. The price made a good break below 49.50 and advanced towards 48.50 where the downward impetus faded. The 50 and 100 EMAs are pointing lower in the 4 hours chart. The 200-EMA maintained its bullish slope in the same chart. The price broke the 200-EMA and continued moving lower. The resistance is at 49.50, the support comes in at 48.50 dollars per barrel.
MACD decreased which confirms the strength of the sellers’. The RSI is in the oversold area.
Brent futures met a barrier around 48.50 dollars per barrel. We await a break below the level to trigger another leg lower. Sellers may drag the price towards 48.00 and lower to 47.50.