12, July 2016

Brent (a 4-hour chart)

Brent (a 4-hour chart)

General overview

Investors are waiting for oil reports and Chinese GDP publication.

Current situation

The buyers tried to raise the oil price yesterday but failed to succeed. The Brent stopped around the 47th figure. During the American session sellers returned to the market and the price fell below the level 46.50. The resistance is at 46.50, the support is at 45.30.

The indicators are in the red zone. The MACD histogram decreased. RSI is close to the overbought area. If the indicators remain at the same levels, it will be a sell signal.

The moving averages (50, 100 and 200) are moving downwards in the 4 hours chart. The price is below the EMAs, it is a sell signal. The Brent futures touched the 50-EMA and bounced downwards from it in the 1 hours chart.

Trading recommendations

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