18, July 2016

Brent (a 4-hour chart)

Brent (a 4-hour chart)

General overview

The Brent is getting cheaper due to supply and demand aspects. At the same time economical uncertainty after the Brexit still supports a demand for the safe assets.

Current situation

The Brent was active on Friday, the oil futures gained about 1.30%. The price recovered and was able to return some of its early losses. However, the market still bearish and we do not believe in a strong growth in the near term. The resistance is at 48.50, the support comes in at 47.50.

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. RSI is close to the overbought area.

The price broke the 50-EMA, but was not able to move higher the 100-EMA. The moving averages (50, 100 and 200) are moving downwards in 4 the hours chart.

Trading recommendations

The resistance level of 48.50 retest is more likely to lead to the strong price support level 46.50 return.