Brent (a 4-hour chart)
Oil prices recovered some ground on Tuesday on hopes that OPEC and non-OPEC members will cut oil output. The ongoing dollar weakness also aids the recovery in the black gold. Meanwhile investors await for API stockpiles data.
Brent seems to have found a solid support at 54.50 dollars per barrel. The benchmark bounced off the level after testing it. Oil prices managed to reverse a minor portion of their losses overnight. Brent recovered to 55.50 where it spent the whole European session. The 4 hours chart showed that the price broke the 50 and the 100 EMAs downwards. The 50 and the 100-EMAs were flat while the 200-EMA pointed higher. The resistance lies at 55.50, the support comes in at 54.50 dollars per barrel.
MACD entered the negative area. If MACD remains within the negative readings, sellers’ positions will strengthen. The RSI indicator was within the oversold territory.
Now bears keep focus at 54.50 dollars per barrel. We think that further weakening to 53.50 is not ruled out.