08, July 2016

Brent (a 4-hour chart)

Brent (a 4-hour chart)

General overview

The Brent returned into the red zone when Crude Oil Stocks change report showed a decrease that coincided with investors' expectations. Analysts remained disappointed as they expected a stronger drop.

Current situation

The Brent futures dropped from 49.50 to 46.50 on Thursday. The instrument lost about 300 pp and stopped its fall at 46.15. The resistance exists at 47.50, the support lies at 46.50.

The indicators (MACD and RSI) do not give a clear signal. The overall picture remained bearish.
The price is below the moving averages (50, 100 and 200) in the 4 hours chart. The moving averages are moving downwards.

Trading recommendations

If the price fixates below the support 46.50, it may continue the downward trend in the short term. The potential target is 45.30.