17, October 2016

Brent (a 4-hour chart)

General overview

Oil prices grew on Friday amid OPEC's plans to cut output. Meanwhile, some investors are skeptical that the OPEC deal will be efficient enough to stabilize prices.

Current situation

Oil prices extended their recovery mode on Friday. Brent continued rallying; buyers led the price from the mark 50.86 towards the resistance at 52.50 dollars per barrel where the upward momentum stalled. The price bounced from the bullish 50-EMA in the 4 hours chart. The moving averages maintained their bullish slope. The resistance is at 52.50, the support comes in at 51.50 dollars per barrel.

MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. The RSI oscillator remained neutral.

Trading recommendations

The bullish momentum run out of steam. The bearish views are getting more popular. The price is expected to decline towards 51.50. After breaking the level Brent quotes may decrease further towards 50.50.