04, November 2016

Brent (a 4-hour chart)

General overview

Oil prices recovered on Thursday following the news of an attack on a Nigerian oil pipeline.

Current situation

Oil prices enjoyed mixed trades on Thursday. Brent oil gapped upwards at the open and the price continued to grow afterwards. Crude oil futures were able to reach the level 47.50 which stopped their further recovery post-European opening. The price slightly rolled back afterwards and spent the rest of the day a few pips below the level 47.50. The 200-EMA is still going upwards, while the 50 and 100 EMAs a moving downwards. The 50-EMA is crossing the 200-EMA downwards. The resistance is at 47.50, the support comes in at 46.50 dollars per barrel.

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

Trading recommendations

All eyes are right now at the resistance level 47.50 dollars per barrel. A break above the level will ease the downward pressure, opening the way towards 48.50. If the level holds oil prices will extend their losses towards 46.50 and 45.50 dollars per barrel.