Brent (a 4-hour chart)
Brent prices weakened when the
Brent kept trading lower on Monday. The price broke the 47.50 level and is approaching the next one – 46.50. The instrument was able to regain the 47.50 level and continued its recovery during the North American hours. The price broke the 50-EMA during the European trades on Monday. Now the oil prices are sandwiched between the 50 and 200 EMAs. The 50 and 100 Day EMAs are turning down, the 200-EMA is neutral. The resistance is at 48.50, the support comes in at 47.50 dollars per barrel.
MACD decreased which confirms the strength of sellers. RSI is approaching oversold area
A strong breakdown and close below 46.50 could send prices lower towards 45.30. However, the instrument is oversold and we do not exclude a large correction towards 48.50.