05, January 2017

Brent (a 4-hour chart)

General overview

Brent ignored bullish US crude oil inventories and returned to a growth on Thursday. Brent oil prices got support after Saudi Arabia informed its customers to cut oil production, thus supporting OPEC plan to reduce global supply.

Current situation

Brent oil was modestly flat during the Asian hours on Thursday. The benchmark could move higher in the European session. Buyers broke the level 56.50 and trended to 57.50 dollars per barrel. The price was around 56.90 ahead of the NY opening. The “black gold” bounced off the 100-EMA and broke the 50-EMA upwards in the 4 hours chart. Brent extended its gains after the 50-EMA break and moved away from the moving averages. The 50, 100 and 200 EMAS maintained their bullish slope in the same chart. The resistance lies at 57.50, the support comes in at 56.50 dollars per barrel.

MACD indicator was at the centerline. If the histogram returns the positive territory, that will indicate buyers’ growing strength. If MACD enters into the negative area the sellers will take control over the market. The RSI indicator left oversold readings and entered the neutral area.

 Trading recommendations

If buyers continue to dominate a close above 56.50 will trigger gains towards 57.50 and 58.50 dollars per barrel.