13, October 2016

Brent (a 4-hour chart)

General overview

Oil prices moved lower on Wednesday ahead of the Fed minutes and the weekly report on US crude oil stockpiles by the API.

Current situation

Brent futures lost ground on Wednesday. Buyers were unable to move the price higher. Oil prices got under selling pressure and the prices dropped towards 51.50 at the NY open. Brent price is struggling with the 50-EMA which blocks its further downward movement. The 50, 100 and 200 EMAs kept moving higher in the 4 hours chart.  The resistance is at 52.50, the support comes in at 51.50 dollars per barrel.

 The MACD histogram decreased which is a sell signal. RSI is going downwards which confirms the strength of sellers.

Trading recommendations

The downward views are getting more popular. We expect the price to break 51.50 and to extend its losses towards 50.50.