06, July 2016

Brent (a 4-hour chart)

Brent (a 4-hour chart)

General overview

The oil prices were under pressure as concerns over the global economy pressured the future demand of oil.

Current situation

The Brent futures were able to test a strong physiological level 50.50. After testing the level the oil quotes decreased. The Brent broke levels 49.50, 48.50 and touched 47.50. In general, the crude oil futures lost about 4% during the trades. The resistance is at 48.50, the support is at 47.50.

The indicators (MACD and RSI) became negative and ended the day in a red zone. MACD moved into the negative zone, RSI touched the oversold area, which is a sell signal. The 100-day moving average broke the 50-EMA and 200-EMA on the 4 hour chart.

Trading recommendations

If the resistance around 47.50 holds the next stop could well be at the 46.50 region. Conversely, the Brent will grow to 49.50.