Brent (a 4-hour chart)
Brent futures edged lower on Monday amid a stronger dollar and rise in US drilling rig number.
Brent is turning bearish in the 4 hours chart. After a short-lived recovery in the Asian session the Brent price bounced downwards from the 52.00 mark on Monday. Sellers pushed the prices lower towards the immediate support 51.50 which slowed down its decline. The 50-EMA acted as a resistance and stopped the growing momentum, rejecting the price downwards in the 4 hours chart. The 50-EMA is turning neutral, the 100 and 200 EMAs 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 moved downwards.
We believe the price will keep battling with the 51.50 level. If the level holds oil prices will bounce back to 52.50. In the scenario where sellers break the level the Brent quotes move lower towards 50.50.