07, September 2016

Brent (a 4-hour chart)

General overview

Iraq's Prime Minister is in the focus now. According to Haider al-Abadi Iraq is ready to cooperate with Saudi Arabia and Russia to freeze on production to increase prices.

Current situation

The technical picture presents a slightly bearish tone. The price kept decreasing on Tuesday during the day. Brent found a support in the 106.50 region where the downward impulse faded and the price slightly rolled back. The 200-EMA stopped the oil prices downward movement. After touching the line the oil futures bounced off. The 200-EMA is neutral, the 50-EMA is pointing lower, the 100-EMA is still moving upwards. The resistance is at 47.50, the support comes in at 46.50 dollars per barrel.

The MACD remained at the same level which confirms the strength of sellers. RSI is approaching the oversold area.

Trading recommendations

If the price returns above 47.50 the Brent futures will continue its uptrend. Alternatively, Brent will decrease below 46.50.