03, August 2016

Brent (a 4-hour chart)

Brent (a 4-hour chart)

General overview

The Brent futures are approaching the 41.40 level. The weakness around the dollar increased the demand for the oil.

Current situation

The tone is still negative in the market. The sellers managed to lead the price from the resistance 42.80 to the new session lows at 41.40. The resistance is at 42.80, the support comes in at 41.40 dollars per barrel.

Indicators still generate a sell signal. MACD decreased which indicates the sellers’ positions strengthening. RSI is close to the oversold area.

The 50, 100 and 200 EMAs accelerated their declines. All moving averages keep heading lower.

Trading recommendations

We believe the decrease will be continued now. The first target is the level 41.40, the next one is 40.00. We do not exclude the growth to 42.80.