02, November 2016

Brent (a 4-hour chart)

General overview

Brent oil futures reverted their recent losses, staying around one month low on Tuesday. Growing skepticism over the ability of OPEC to reach an agreement on an output freeze weighed on oil prices.

Current situation

Oil prices gapped higher at the open on Tuesday. The price jumped from 48.31 to 48.58 through the level 48.50 dollars per barrel. Brent prices were able to extend their gains after the gap. However, the upward impetus soon faded and the price returned to the broken level. The 50 and 100 EMAs extended their decline in the 4 hours chart. The 200-EMA maintained its bullish slope in the same timeframe. The resistance is at 49.50, the support comes in at 48.50 dollars per barrel.

MACD remained at the same level which confirms the strength of sellers. The RSI remained within oversold area.

Trading recommendations

If the bullish scenario prevails the price might extend its recovery towards 49.50. A break of 48.50 may trigger the next leg of move lower towards 47.50.