10, October 2016

Brent (a 4-hour chart)

General overview

Oil prices remained within green territory amid strong US inventories reports and hopes of an output deal.

Current situation

The price remained in an upward channel, close to its upper limit. Brent retreated from the recent highs and erased some of its losses on Friday. The price moved below 52.50 and headed towards the nearest support at 51.50. Brent futures hover over the moving averages in the 4 hours chart. The 50-EMA crossed the 100 and 200 EMAs upwards. The moving averages keep moving higher. 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 bounced from the overbought area.

Trading recommendations

Oil prices remained bullish. To keep growing the price needs to break above 52.50. A break below 50.50 would signal correction as daily studies are overbought.