Brent (a 4-hour chart)
Oil grew on Monday amid risk appetite growth. OPEC’s plans to cut production support on both sides of the
Oil prices remained under buying pressure on Monday. Despite the gap downwards at the open of the Asian session, the price turned around and extended last week growth. Brent approached the August high that was posted on the 19th August. The price remained well above the moving averages in the 4 hours chart. The 50-EMA accelerated its growth and crossed the 100-EMA upwards. All moving averages are trending higher. The resistance is at 50.50, the support comes in at 49.50 dollars per barrel.
MACD is positive. The histogram grew which is a buy signal. RSI is in the overbought area.
We expect a correction which may last a few days to ease the current overbought scenario. Oil may return below 49.50 to the 48.50 region.