Brent (a 4-hour chart)
Oil prices edged lower on Wednesday after surprising U.S. stocks growth which underlined the market's supply glut.
After a short-lived recovery on Tuesday Brent oil prices turned lower, extending their losses on Wednesday. The price remained in a descending channel, trading close to its lower trendline line. Sellers broke the 48.50 and tested the 47.50 on Wednesday's trades. The price remained below the moving averages in the 4 hours chart. The 50 and 100 EMAs are moving lower, the 200-EMA is just turning downwards. The resistance is at 48.50, the support comes in at 47.50 dollars per barrel.
MACD remained at the same level which confirms the strength of sellers. The RSI is within oversold levels.
We will place short orders only if we see a solid move below 47.50. However, we consider that scenario as an alternative as oil prices are heavily oversold. We expect a near-term correction caused by profit-taking.