Brent (a 4-hour chart)
Oil prices strengthened across the board on the back of the largest oil inventories drawing since 1999.
Brent prices retreated from the recent high on Friday when buyers started closing their positions after a rally the day before. The price returned below 49.50 and is approaching the support 48.50. Crude oil prices are approaching the 50-EMA in the 4 hours chart. The 50-EMA extended its growth, the 100 and 200 EMAs are turning upwards. The resistance is at 49.50, the support comes in at 48.50 dollars per barrel.
MACD is in the positive area. The indicator decreased which indicates the buyers’ weakness. RSI bounced from the overbought territory.
We believe that the price is heading towards 48.50 dollars per barrel. If the level could stand the Brent will return to its growth and buyers will push the instrument above 49.50. The next buyers’ target is the level 50.50 dollars per barrel. Sellers, in their turn, may push the price towards 47.50.