05, July 2016

Brent (a 4-hour chart)

Brent (a 4-hour chart)

General overview

The Brent continued its recovery yesterday. The events in Nigeria and the Norwegian oil and gas industry workers’ victory in a fight for higher wages supported the oil prices

Current situation

The oil continued its recovery on Monday. The fundamental background supported the oil futures. The price was able to reach a current resistance at 50.50 where it turned down and slightly decrease. The mark 50.50 seems to be a hard level to break. The price has recently bounced downwards four times from this level. The resistance is at 50.50, the support is at 49.50.

The indicators (MACD and RSI) remain positive. Staying in a green zone is a positive factor for buyers. The moving averages form a cross-over. The 100-day moving average broke the 200-day moving average on the 4 hour chart.

Trading recommendations

If the price fixates below the support 49.50, it may continue the downward trend in the short term. The potential target is 48.50.