06, September 2016

Brent (a 4-hour chart)

General overview

Oil prices grew after reports that Saudi Arabia and Russia will cooperate to support the market. 

Current situation

Brent showed volatile trades on Monday. First, it jumped to the monthly peaks and set a new high at 49.50. Then, the price turned around and sharply fell below 47.50. The price returned some of its losses and slightly grew during North American hours. The resistance is at 47.50, the support comes in at 46.50 dollars per barrel.

The price is between the 50 and 200 EMAs in the 4 hours chart. The 50-EMA is crossing the 100-EMA in the same timeframe.

MACD grew which indicates the sellers’ positions weakening. RSI left the overbought area.

Trading recommendations

If the price returns above 48.50 the Brent futures will continue its uptrend. Alternatively, Brent will decrease below 46.50.