Brent (a 4-hour chart)
Oil prices strengthened on hopes that the OPEC members will come to an agreement with an output cut.
Market’s positive mood persisted, oil prices extended their short-term upward trajectory yesterday. Prices bounced off the oversold level at 43.50 and headed north. Brent futures broke the level 44.50 and continued moving higher afterwards. The bulls briefly slowed down approaching the 45.50 region. However a new buying interest around the level fueled their positive sentiment. The benchmark broke the level and extended its gains. According to the 1 hour chart prices broke the 50-EMA and tested the 100-EMA which rejected them downwards mid-European session. After rolling back buyers attacked the moving again and broke it upwards this time. Prices moved to the 200-EMA after breaking the level which stopped their further strengthening. The moving averages kept heading lower in the same chart. The resistance is at 46.50, the support comes in at 45.50 dollars per barrel.
MACD grew which indicates the sellers’ positions weakening. RSI moved upwards heading away from the oversold levels.
Brent oil futures looked positive yesterday. When the price consolidates above the level 45.50 the resistance 46.50 will come back into play.