14, July 2016

Brent (a 4-hour chart)

Brent (a 4-hour chart)

General overview

The Brent decreased when the International Energy Agency (IEA) warned that the oversupply on world markets threatens the price recovery. The American Petroleum Institute (API) release showed an unexpected growth in the US stocks.

Current situation

The Brent was under pressure, the instrument lost about 4.50%. The price is in a descending channel, the oil futures decreased to the lower limit. The resistance is at 46.50, the support comes in at 45.30.

MACD histogram is in the negative area which indicates the sellers’ strength. If MACD continues its decrease, bears’ positions will strengthen. RSI is close to the overbought area which confirms a downtrend.

The price rebounded from the 50-EMA downwards. The moving averages are turning downwards in 4 the hours chart.

Trading recommendations

We may expect the growth towards 47.50, further on we expect a fall to 45.30.