Brent (a 4-hour chart)
The Brent is under pressure. We believe the current oversupply and the world economy slow down will weigh on the oil price.
The Brent closed bullish yesterday. Bulls seem to take control over the market. The buyers managed to lead the price from the support 42.80 to the 44.00 region where the pair found a strong resistance. We consider the current growth corrective. The resistance is at 45.30, the support comes in at 44.00 dollars per barrel.
MACD is in the positive area. The histogram grew which indicates the buyers’ strength. RSI approached the overbought area.
The instrument broke the bearish 50, 100 and 200 EMAs upwards in the 1 hour chart. The 50-EMA is turning upwards, the 100-EMA is neutral, the 200-EMA is still heading lower in the same chart. The price broke the 50-EMA and hovered above in the 4 hours chart. All moving averages keep heading lower.
We believe the growth will be continued now. The first target is the level 45.30. We do not exclude a decrease towards 42.80.