11, October 2016

Brent (a 4-hour chart)

General overview

Oil prices grew on Monday when Russia said to support the global production freeze.

Current situation

The bullish scenario prevailed on Monday. After a gap lower at the beginning of the Asian session Brent prices bounced off the support 51.50 dollars per barrel and trended upwards. Oil prices extended their gains during the day, the quotes broke the level 52.50 and touched 53.50. Brent hit one-year high during NY trading session. Prices continued developing well above the bullish 50, 100 and 200 EMAs. The moving averages accelerated their growth. All moving averages direction is upwards. The resistance is at 53.50, the support comes in at 52.50 dollars per barrel.

MACD shows a divergence in the 4 hours chart. MACD remained in the positive area. The histogram grew which is a buy signal. RSI approached the overbought area.

Trading recommendations

Bulls fought back control and pushed the price higher on Monday. Their primary goal is the level 54.50 dollars per barrel.