08, September 2016

Brent (a 4-hour chart)

General overview

The latest agreement among Iran, Saudi Arabia and Russia over a potential output freeze supported oil prices. All eyes are on the API report now.

Current situation

Brent futures returned under selling pressure in the middle of the European session. Earlier, the price partly erased its losses. Buyers managed to push the oil prices from the support 46.50 above the level 47.50. The Brent bounced from the 50-EMA in the 4 hours chart. The 50-EMA shows a bearish slope, the 100-EMA is still moving upwards and the 200-EMA is neutral. The resistance is at 47.50, the support comes in at 46.50 dollars per barrel.

MACD remained in the positive area. RSI is consolidating within the overbought territory.

Trading recommendations

The indicators recommend short positions. Once we break below the 47.50 level, we think that the 46.50 level will be next. Alternatively, Brent may extend its recovery towards 48.50.