06, October 2016

Brent (a 4-hour chart)

General overview

Oil prices grew following the API report which showed that the US crude inventories dropped by 7.6 million barrels last week.

Current situation

Technically, the short term picture is modestly bullish. Oil prices kept growing after a brief consolidative phase during the Asian hours. Brent was able to break 51.50 ahead of the US opening. The 50-EMA accelerated its growth. The 50-EMA broke the 100 and 200 EMAs upwards. The resistance is at 52.50, the support comes in at 51.50 dollars per barrel.

MACD remained at the same level which confirms the strength of buyers. RSI is in the overbought area.

Trading recommendations

Oil prices paused awaiting for EIA data ahead of NY trading session. A growth in inventories will weigh on Brent prices. On the other hand, its decrease will push the price higher.